Economic Devastation in the West Bank: A Year After the War
As the conflict in the Palestinian territories continues, the economic repercussions of the Israeli aggression that began on October 7, 2023, have been devastating. The Palestinian West Bank has faced significant economic losses alongside the tragic human toll, with over 722 reported martyrs and 6,200 wounded. The ongoing violence has led to a staggering decline in economic productivity, with estimates indicating a loss of approximately 30% in the West Bank’s productive capacity and an overall loss of 80% for the Palestinian economy.
Decline in GDP and Employment
Recent data from the Palestinian Central Bureau of Statistics reveals a sharp contraction in the gross domestic product (GDP), which fell by 32% across Palestine. The Gaza Strip has suffered an 86% decrease in GDP during the second quarter of 2024 compared to the same period in 2023, while the West Bank experienced a 22% decline. Economic activities have been severely impacted: mining and manufacturing dropped by 27%, construction by 41%, and agriculture by 11%. The per capita GDP has also seen a significant decrease, falling to $512 in the second quarter of 2024, a 33% decline from the previous year.
The job market has not escaped the devastation, with approximately 306,000 job opportunities lost in the West Bank alone. Unemployment rates have surged to about 35%, a stark increase from 12.8% prior to the conflict. The closure of labor markets, particularly within Israel, has further exacerbated the situation, costing the Palestinian economy an estimated $330 million monthly due to job losses in sectors such as construction and agriculture.
Infrastructure and Housing Damage
Infrastructure has also been heavily affected, with the United Nations Office for the Coordination of Humanitarian Affairs reporting that approximately 1,725 Palestinian facilities have been demolished or damaged since the onset of the conflict. In Jenin, 70% of the road network has been destroyed, leading to direct losses estimated at over $28 million. Similarly, the city of Tulkarm has faced unprecedented destruction, with damages exceeding $35 million.
Foreign Trade and Banking Sector Impact
The economic downturn is reflected in foreign trade as well, with a 26.3% decline in trade volume during the first seven months of 2024. Palestinian banks have reported an alarming 89% drop in profits during the first half of the year, signaling a broader financial crisis.
Tourism Sector Collapse
The tourism sector, a vital component of the West Bank's economy, has been severely hit, with hotel guest numbers plummeting by 84.2% in the first half of 2024 compared to the previous year. This decline has led to significant job losses, with 15,265 workers in the tourism sector losing their jobs, primarily in restaurant services.
The ongoing conflict has not only resulted in tragic human losses but has also left the Palestinian economy in ruins, raising urgent questions about recovery and future stability.
