Gaza economy shrunk by over 80% in last quarter of 2023: World Bank
4 Min Read
The World Bank says the Gaza Strip's economy shrank more than 80% in the last quarter of 2023 amid the ongoing war on the Gaza Strip.
-
Palestinians line up for a free meal in Rafah, Gaza Strip, February 16, 2024 (AP)
The Israeli aggression on Gaza had devastating effects on its infrastructure, which could take years to rebuild, and caused the blockaded strip's economy to shrink by more than 80% in the last quarter of 2023, the World Bank said on Thursday.
The World Bank declared that the war caused paramount damage all over Gaza, with all economic activity in Gaza coming to a grinding halt.
Preliminary estimates issued by the Palestinian Central Bureau of Statistics suggest that Gaza's GDP decreased by more than 80% from about $670 million in Q3 to only $90 million in Q4.
This quarterly decline of 80% represents a 24% decline year-on-year, the World Bank said, adding that "the recorded level of damage and destruction of fixed assets is catastrophic."
Almost everyone in Gaza will live in extreme poverty, at least in the foreseeable future, the World Bank added.
As the war continued, the World Bank revealed that it was making a $30 million grant to help ensure vital education for children continues.
Billions of dollars, decades to rebuild
The United Nations stated in late January that the genocide in Gaza and the drastic magnitude of bombing have destroyed almost half of the Gazan infrastructure, rendering the strip uninhabitable and in need of billions of dollars for rebuilding.
Since "Israel" launched its full-force offensive on Gaza, the UN has followed the deteriorating living conditions, describing the rate as "precipitous".
In late November, the UN Conference on Trade and Development (UNCTAD) estimated that at least 37,379 buildings had been flattened by Israeli attacks, totaling 18% of Gaza's complex. The UNCTAD's recent report indicated that the number has almost tripled since then, reaching 50%.
Satellite footage of Gaza explicitly shows the dire state of the Strip, with nearly half of its infrastructure completely pulverized.
Rami Alazzeh, an economist for UNCTAD and a co-author of the report, relayed the updated estimates to AFP and warned that "the longer these [Israeli military] operations in Gaza go on, the more severe the impact will be," reaffirming that Gaza is unlivable.
Economically, Gaza had been suffering under the 17-year blockade "Israel" had imposed and showed a 4.5% rundown during the first three quarters of 2023, leading up to the genocide. Since October, Gaza's GDP saw a 24% retrenchment, UNCTAD revealed.
