The United Nations has reported a dire situation in the Palestinian economy, describing it as being in a state of 'free fall.' The report highlights the significant economic decline in both Gaza and the West Bank, attributing it to various factors such as Israeli military actions, settlements, land confiscations, and violence by settlers.
The report emphasizes the urgent need for international intervention to address the humanitarian crisis and pave the way for lasting peace and development in the region. It calls for a comprehensive recovery plan, increased international aid, the lifting of Israel's blockade on Gaza, and the release of withheld funds for Palestinians.
Gaza's economy, already fragile with high unemployment rates, has been further devastated by recent conflicts, leading to a near standstill in economic activity. The majority of Gaza's population has been displaced, living in dire conditions and relying heavily on international assistance.
In the West Bank, the revocation of work permits by Israel has resulted in the loss of over 300,000 jobs, pushing unemployment rates to alarming levels. The ongoing military crackdown and restrictions imposed by Israel have further hampered economic activities in the region.
The report underscores the immense challenges ahead, estimating that tens of billions of dollars and decades will be required to restore Gaza to its pre-conflict state and put it on a path of sustainable development. The economic output in Gaza has plummeted significantly, with businesses and farming assets suffering extensive damage.
Israel's control over Palestinian tax revenue has also been a point of contention, with significant amounts being withheld or suspended over the years. This has severely impacted the Palestinian Authority's ability to provide essential services and meet financial obligations.
The conflict between Israel and Hamas has taken a heavy toll on the Palestinian population, with thousands of casualties reported. The situation remains grim, with little progress towards a recovery plan in sight.
