Israel’s blockade hollowed out Gaza’s economy and left 80% of its inhabitants dependent on international aid even before the current crisis erupted, the UN has said.
In a report outlining conditions in the Palestinian territory last year, the UN Conference on Trade and Development (Unctad) said two-thirds of Gaza’s population was living in poverty, while its unemployment rate of 45% was one of the highest in the world.
Unctad said a “decades-long” blockade had taken a heavy toll on Gaza’s economy, and that the aid flows that had helped underpin living standards for a population of just over 2 million people had dried up.
The report was prepared by the Geneva-based body before Hamas militants attacked southern Israeli communities on 7 October, killing 1,400 people and taking 222 hostages into Gaza. The subsequent Israeli bombardment of the territory has damaged infrastructure and led to fresh economic disruption, while more than 5,000 Palestinians have been killed.
Unctad said: “The result of the restrictions and closures and military operations has been the suppression of investment and productive activities and the collapse of the economy of Gaza, as well as its separation from the world and the rest of the Palestinian economy in the West Bank and East Jerusalem.
“Unctad has noted that the blockade, frequent military operations and restrictions on the entry and exit of people and essential goods have stifled the economy, impeded access to health and other essential services and undermined the living conditions of more than 2 million Palestinians.”
The report said conditions were worse in Gaza than for Palestinians living in the West Bank, with a 65% probability of being poor, a 41% probability of dropping out of the labour force in despair, and for those looking for work, a 45% probability of being unemployed. Living standards – as measured by gross domestic product per head – were 27% lower than they were in 2006.
“The restrictions on movement also impede access to health and other essential services, as 80% of Gazans depend on international aid. Living in Gaza in 2022 meant confinement in one of the most densely populated spaces in the world, without electricity half the time, and without adequate access to clean water or a proper sewage system.”
Unctad said in the past donor aid had helped “soften the impact of occupation”. However, in 2022 the Palestinian government received only $250m (£206m) in donor budget support and $300m for development projects – down from a total $2bn in 2008. As a share of GDP donor aid had fallen from 27% to 3% since 2008.
Unemployment remained high at 24% across the occupied Palestinian territories, with rates of 13% in the West Bank and 45% in Gaza. Women and young people were the hardest hit, the report said.
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“Since June 2007, Gaza suffered several military operations and has been under a land, sea and air closure,” Unctad said. “Gazans need permits to move in and out of the strip through two land crossing points controlled by Israel.
“Restrictions on the movement of people and goods, destruction of productive assets in frequent military operations and the ban on the importation of key technologies and inputs have hollowed out Gaza’s economy.”
