The World Bank has reported a dramatic 35% decrease in the real GDP of the Palestinian territories in the first quarter of 2024, marking it as the largest decline ever recorded.
According to the bank’s report titled “Palestinian Economic Update,” issued in September 2024, the economic situation has severely deteriorated, with Gaza’s economy shrinking by 86% and the West Bank’s by 25% during this period.
Unemployment has reached unprecedented levels, surpassing 50%.
The World Bank also forecasts a widening fiscal gap for the Palestinian Authority, expecting it to reach $2 billion in 2024—triple the gap from the previous year.
This poses severe risks to the continuity of service provision and could lead to a systemic collapse.
The report highlights the cessation of commercial operations in Gaza, leaving families without income as the prices of basic goods skyrocket and inflation exceeds 250%.
This inflation spike is largely due to the ongoing Israeli military actions in the region, which have been relentless since October 2023.
Moreover, the World Bank notes that poverty in Gaza has reached 100%, with the educational system collapsing and the healthcare system severely damaged.
In Gaza, 80% of primary care centres are no longer operational. In contrast, poverty in the West Bank has escalated from 12% to 28%.
The bank underscores that the conflict has caused a severe cash shortage in Gaza, impacting access to humanitarian aid and basic financial services.
The Israeli military operations continue, following the start of “Operation Al Aqsa Flood” by Hamas on October 7, 2023.
This operation included launching thousands of rockets from Gaza into Israel and resulted in significant casualties on both sides—approximately 1,200 Israelis and 41,467 Palestinians were killed, with another 95,921 Palestinians injured, mostly women and children.
The World Bank’s report serves as a crucial call to the international community to address the dire economic and humanitarian situation in the Palestinian territories, exacerbated by prolonged conflict and instability.
