GENEVA 鈥 The Palestinian economy is 鈥渋n free fall,鈥 the United Nations reported Thursday, with production in Gaza plunging to one-sixth of its level before Israeli forces began a blistering military response to the Oct. 7 attacks in the territory.
The report from UN Trade and Development also warned of 鈥渞apid and alarming economic decline鈥 in the West Bank, citing expanded Israeli settlements, land confiscations, demolition of Palestinian buildings and violence by settlers.
The report made no mention of corruption in Palestinian institutions.
鈥淭he Palestinian economy is in free fall,鈥 Pedro Manuel Moreno, the agency鈥檚 deputy secretary-general, told reporters in Geneva. 鈥淭he report calls for the international community to halt this economic free fall, address the humanitarian crisis, and lay the groundwork for lasting peace and development.鈥
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That would include a 鈥渃omprehensive recovery plan鈥 for Palestinian areas, more international aid, the lifting of Israel鈥檚 blockade on Gaza, and the release of revenues and withheld funds for Palestinians retained by Israel, he said.
With violence continuing, there鈥檚 little sign of any recovery plan being launched anytime soon.
Mutasim Elagraa, who coordinates the agency鈥檚 assistance to Palestinians, said: 鈥淚f we want to return Gaza to pre-October 2023, we need tens of billions of dollars, or even more, and decades.鈥
The ultimate goal is 鈥渢o put Gaza on a path of sustainable development,鈥 which will take more time and money, he said.
Economic output in Gaza plunged to just over $221 million in the half-year including the last quarter of 2023 and first quarter of 2024 鈥 the last quarter for which figures are available 鈥 or about 16% of the total figure for the same half-year period in 2022 and 2023, when the total was just over $1.34 billion, the agency said.
Meanwhile, more than 300,000 jobs in the West Bank 鈥 home to some 3 million Palestinians 鈥 have been lost, driving unemployment rates up to 32%, up from under 13% before the conflict, the agency reported.
By early this year, as much as 96% of Gaza鈥檚 farming assets, including livestock farms, orchards, machinery and storage facilities, had been 鈥渄ecimated,鈥 the agency, also known as UNCTAD, said.
Over 80% of businesses were damaged or destroyed, and the damage has continued to worsen, it said.
Israel鈥檚 offensive in Gaza has killed at least 41,084 Palestinians and wounded another 95,029, the territory鈥檚 Health Ministry said. The ministry鈥檚 count does not differentiate between civilians and militants.
Israel launched its campaign vowing to destroy the Palestinian group Hamas after the Oct. 7 attack on southern Israel in which militants killed some 1,200 people and abducted 250 others.