Devastating Consequences of the Israel-Hamas War: A Decade of Economic Recovery on the Horizon

Strategic Insights -

The Israel-Hamas war has had a catastrophic impact on the Palestinian economy, with the Palestinian territories' economy contracting by 35% since Israel's invasion of Gaza a year ago, according to the United Nations Development Programme (UNDP). The war has also pushed nearly all of Gaza's population into poverty, with the poverty level approaching 100% and unemployment soaring to 80%. The UNDP's Chitose Noguchi warned that even under optimal conditions, it would take at least a decade for economic output to recover to pre-war levels.

Key Takeaways:

  • The Palestinian territories' economy has shrunk by 35% since Israel's invasion of Gaza a year ago.
  • The poverty level in Gaza is approaching 100%, with nearly all of the population in poverty.
  • Unemployment in Gaza has reached 80%.
  • The war has reversed development in Gaza by an estimated 70 years, with the economy comparable to that of 1955.
  • Schools, hospitals, and other essential infrastructure have been destroyed or severely damaged.
  • Nearly 43,000 Palestinians have been killed in Gaza.
  • Over 3.3 million Palestinians, including 1.5 million children, need urgent humanitarian assistance.
  • The cost of repairing damaged infrastructure is estimated to be $18.5 billion, almost the entire annual economic output of the Palestinian territories in 2022.

Statistics:

  • 35%: the contraction of the Palestinian territories' economy since Israel's invasion of Gaza a year ago.
  • 100%: the approaching poverty level in Gaza.
  • 80%: the unemployment rate in Gaza.
  • 70 years: the estimated reversal of development in Gaza, with the economy comparable to that of 1955.
  • 18.5 billion: the estimated cost of repairing damaged infrastructure.
  • 3.3 million: the number of Palestinians in need of humanitarian assistance.
  • 1.5 million: the number of children in need of humanitarian assistance.
  • 43,000: the number of Palestinians killed in Gaza.
  • 986: the number of health workers killed by the end of September.
  • 625,000: the number of students in Gaza with no access to education.
  • 93%: the percentage of school buildings severely damaged.
  • 2022: the year in which the annual economic output of the Palestinian territories reached $18.5 billion.

Sources:

  • United Nations Development Programme (UNDP)
  • United Nations press conference in Geneva
  • Health ministry figures from Gaza