Gaza Strip Faces Unprecedented Poverty Amid Ongoing Conflict
The World Bank has issued a stark report revealing that 100% of residents in the Gaza Strip are now living in poverty, a devastating consequence of the ongoing Israeli war that has persisted for nearly a year. The report, titled "Palestinian Economic Update," highlights that inflation in the region has skyrocketed to over 250%, exacerbating the dire economic conditions for the population.
As the conflict nears its one-year mark, the repercussions have been catastrophic, with approximately two million people displaced. The report indicates a staggering 35% decline in the real GDP of the Palestinian territories during the first quarter of 2024, marking the largest economic contraction ever recorded for the region. Specifically, the Gaza economy has contracted by 86%, while the West Bank has seen a 25% decline.
Unemployment rates have reached alarming levels, surpassing 50% across the Palestinian territories. The World Bank warns that the financial situation for the Palestinian Authority is set to deteriorate further, with a projected funding gap of $2 billion in 2024—three times larger than the previous year. This significant shortfall poses serious risks to essential services, potentially leading to a total collapse of the economic system.
The halt of commercial activities in Gaza has left families without income, while the prices of basic commodities continue to rise sharply. The education and health systems in Gaza are on the brink of collapse, with 80% of primary care centers no longer operational. Meanwhile, poverty levels in the West Bank have surged from 12% to 28% since the onset of the conflict.
The World Bank also highlighted the severe cash shortages in Gaza, which have impeded access to humanitarian aid and basic financial services. The Palestinian banking sector is facing increasing financial risks, as banks have become the primary source of financing for the Palestinian government, providing loans to cover public sector wages and maintain essential services.
The ongoing conflict, supported by American backing, has resulted in more than 137,000 Palestinian casualties, predominantly among children and women, alongside 10,000 individuals reported missing. Despite international calls for an immediate ceasefire, Israel continues its military operations, disregarding UN resolutions aimed at alleviating the humanitarian crisis in Gaza.
