Decades of Growth Erased: The Dire Economic Impact of the Gaza Conflict

An unprecedented economic collapse in the Palestinian territories, fueled by conflict and restrictions, has reversed decades of growth. The United Nations reports significant damage to infrastructure and services, placing the Palestinian economy's downturn among the worst worldwide since 1960, highlighting the urgent need for international support.

The violent conflict over the last two years and economic restrictions have brought about a historic downturn in the Palestinian economy, according to a United Nations report released Tuesday. The report from the United Nations Conference on Trade and Development (UNCTAD) details how infrastructural damage and loss of productive assets have obliterated decades of socioeconomic progress in the Occupied Palestinian Territory.

By the close of last year, the Palestinian GDP per capita reverted to levels last seen in 2003, effectively erasing 22 years of developmental gains. The report underscores the severity of the economic crisis, listing it among the top ten worst globally since 1960. With considerable destruction in Gaza following the two-year conflict between Israel and Hamas, the report indicates that recovery will be heavily dependent on sustained international intervention, potentially taking decades.

The economic situation in the West Bank is described as historically dire, exacerbated by significant movement and access restrictions and limited opportunities in various economic sectors, as noted in the United Nations report.

(With inputs from agencies.)