The Gaza Strip has Experienced 16 Years of De-Development, says UN

The Gaza Strip has experienced 16 years of de-development, the United Nations warned Wednesday, adding that the economic consequences of the Israel-Palestine conflict were “impossible to determine.”

Economic Situation in Gaza Strip Dire, Even Before Recent Conflict

The economic situation in the Palestinian enclave has been in a dire state since last year, even before the latest conflict broke out, according to an annual report by the U.N.’s Conference on Trade and Development (UNCTAD).

“Gaza has Experienced 16 Years of De-Development,” says UN

“Gaza has experienced 16 years of de-development and suppressed human potential and the right to development,” the agency said.

Current Conflict Exacerbates Economic Crisis

While the report focused on 2022, during a press conference UNCTAD officials could not ignore the current conflict.

Israeli Siege and Strikes on Gaza

Israel launched a complete siege and unprecedented strikes on Gaza after a surprise cross-border attack by the Palestinian resistance group Hamas on Oct. 7.

Human Casualties

Israeli bombing has now killed more than 5,800 people in Gaza, nearly half of them children, according to the Hamas-run Health Ministry. Some 1,400 people are said to have been killed in Israel.

Economic Consequences Difficult to Determine

“The economic consequences of the current and ongoing humanitarian crisis in Gaza are impossible to determine,” Richard Kozul-Wright, the director of UNCTAD’s globalization and development strategies division, told a press conference.

Gaza Economy “Hollowed” Out

The report on the state of the Palestinian economy in 2022 said the Gazan economy had been “hollowed” out, with 80% of the enclave’s population dependent on international aid.

Palestinian Economy Hit by COVID-19

The report also highlighted the impact of the COVID-19 pandemic on the Palestinian economy.

Significant Decline in GDP

“Even though the Palestinian gross domestic product (GDP) grew by 3.9% in 2022, per capita real GDP was still 8.6% below its 2019 pre-pandemic level. In Gaza, real GDP per capita was 11.7% below the 2019 level and close to its lowest level since 1994,” the report said.

Palestinian GDP per Capita Significantly Lower than Israel

Palestinian GDP per capita is “currently at just 8% of that of Israel,” the report added.

High Unemployment Rates

UNCTAD said that unemployment was at 45% in the Gaza Strip and 13% in the West Bank, with women and young people affected the most.

Call for Negotiations and Donor Support

“The vicious circle of destruction and partial reconstruction needs to be broken by negotiating a peaceful solution, based on international law, and relevant U.N. and Security Council resolutions, to end hostilities, and by increasing donor support for the recovery of the war-torn economy,” the report concluded.