The Development Program of the UN confirmed that the war in the Gaza sector has destroyed the Palestinian economy, leading to a 35% decrease in gross domestic product since the beginning of the war earlier this year.
In the report published today, the Development Program of the UN stated that the war in Gaza has resulted in the erasure of achievements accumulated over 69 years of sector development. The program warned that without the removal of economic restrictions and the possibility of recovery and investment in development, the Palestinian economy will not be able to return to pre-war levels and continue its development, relying only on humanitarian aid.
The report emphasized that a comprehensive recovery and renewal plan, including humanitarian assistance and strategic investments in recovery and development, as well as the removal of economic restrictions and the improvement of living conditions for recovery, may help restore the Palestinian economy on a reform path and align it with the development plans of Palestine by 2034.
In the report, the general director of the UN program, Achim Steiner, noted that projections suggest that in the coming decades, even with adequate humanitarian assistance, the economy may not reach its previous levels within a decade or more.
Under a limited scenario of early recovery, the restrictions on Palestinian workers will be lifted, and dormant businesses will return to the Palestinian economy. Apart from 280 million dollars in humanitarian aid allocated annually, 290 million dollars is dedicated to recovery programs. This amounts to 1% of annual growth in production, which could help the economy recover and resume Palestinian development along the right path.
The report notes that by the end of 2024, the level of development according to the human development index may fall to a level not reached since the introduction of the human development index for Palestine in 2004. Organizational estimates suggest that the human development index for Palestine could drop to 0.643—the level of the year 2000—resulting in a 24-year setback in development, and for the Gaza sector—to 0.408—the level of 1955—indicating a loss of more than 69 years of progress. For the western coast, it is projected to decline to 0.676, which reflects a loss of 16 years, and the situation may deteriorate amid increased military incursions in the western coast.
