Gaza - New York: Europe and the Arabs
The United Nations Conference on Trade and Development (UNCTAD) stressed that restoring the social and economic conditions that prevailed before the start of the military operation in Gaza will take decades, highlighting the urgent need to break the cycle of economic destruction that has made 80% of the population dependent on international aid.
This was stated in the report issued by the United Nations Trade and Development Agency yesterday, Wednesday, on the social and economic deterioration in Gaza since the start of the military operation on October 7, 2023. The report identifies the extent of losses in gross domestic product, timelines for recovery, and long-term effects on poverty and household spending. livelihood, and paints a bleak picture of the future development challenges for the residents of Gaza and the international community. According to the daily news bulletin issued by the United Nations, which added, “Using satellite images and official data, UNCTAD estimates that Gaza’s GDP contracted by 4.5% in the first three quarters of 2023. The military operation accelerated this decline.” It precipitated a 24% contraction in GDP over the entire year and a 26.1% decline in per capita GDP.
The report explained that if the current military operation ends and the reconstruction process begins immediately and the growth trend recorded in the period between 2007-2022 continues with an average growth rate of 0.4%, the economy will not be able to restore the 2022 GDP levels in Gaza until the year 2092. As per capita GDP and social and economic conditions continue to deteriorate.
He added that under the most optimistic scenario of 10% annual GDP growth, the per capita GDP in Gaza will not return to the level it achieved in 2006 - before the blockade - except in 2035.
Financial commitment
The UNCTAD report stressed that the recovery of the Gaza economy from the current military operation will require a financial commitment, equivalent to several times the amount that was required to recover after the Israeli military operation in Gaza in 2014, which is $3.9 billion, in addition to the need for a concerted international effort to restore the social and economic conditions that were previously in place. prevalent before the war.
He reported that by December 2023, unemployment had risen to 79.3%, and 37,379 buildings, equivalent to 18% of the total buildings in the Gaza Strip, were damaged or completely destroyed as a result of the military operation.
He pointed out that the Gaza Strip, where nearly half of the population is children, is now almost uninhabitable as people lack sources of income and access to water, sanitation, health services, and education.
The report warned that returning to the situation that prevailed before the military operation is not an option, and that the possibility and speed of recovery in Gaza will depend on the speed of ending the military operation, donor participation, and subsequent growth performance.
Break the vicious circle
The UNCTAD assessment also warned that the new phase of economic rehabilitation cannot simply aim to return to the situation that existed before October 2023, calling for the need to break the vicious cycle of destruction and partial reconstruction.
The United Nations Conference on Trade and Development said in its report that the economic constraints facing Gaza, whose roots go back to 57 years of occupation and 17 years of siege, require a comprehensive understanding and realistic strategies to unleash growth potential through measures that include rebuilding the Gaza International Airport and building a sea port. , and enabling the Palestinian government to develop the natural gas fields that were discovered in the 1990s in the Mediterranean Sea off the coast of Gaza to help finance the reconstruction of infrastructure.
The report stressed the importance of providing immediate and strong support to the Palestinian government’s budget, and this support would help prevent the expansion of the collapse by maintaining governance, providing basic services, and supporting aggregate demand by paying salaries and settling arrears owed to the private sector.
UNCTAD stressed that resolving the Gaza crises requires ending the military operation and lifting the siege, as a pivotal step towards achieving a two-state solution on the 1967 borders, in line with international law and relevant United Nations resolutions. He also urged donors and the international community to recognize that the restrictions imposed on the Palestinian economy, specifically in Gaza, extend beyond the recent confrontation.