
(Patria) - The Israeli blockade has destroyed Gaza's economy, making 80 percent of its residents dependent on international aid even before the current crisis erupted, the UN announced.
In a report describing the situation in the Palestinian territory last year, the United Nations Conference on Trade and Development (Unctad) states that two-thirds of Gaza's population lives in poverty, while the unemployment rate is close to 45 percent, one of the highest rates in the world.
Unctad reported that the decades-long blockade has taken a heavy toll on Gaza's economy and that aid flows that helped support the living standards of the population of just over 2 million have dried up.
The report was prepared by the Geneva-based body before Hamas militants attacked southern Israeli communities on October 7, killing more than 1,000 people and taking more than 200 hostages. Subsequent Israeli bombing of the territory damaged infrastructure and led to further economic disruptions, with more than 5,000 Palestinians killed.
“The result of restrictions, closures, and military operations is the suppression of investment and production activities and the collapse of Gaza's economy, as well as its isolation from the world and the rest of the Palestinian economy in the West Bank and East Jerusalem,” the report states, according to The Guardian.
According to the report, the blockade, frequent military operations, and restrictions on the entry and exit of people and essential goods have stifled the economy, hindered access to health and other essential services, and undermined living conditions for more than 2 million Palestinians, N1 reports.
The report states that conditions in Gaza are worse than for Palestinians living in the West Bank, with a 65% probability of being poor, a 41% probability of the labor force being in despair, and those seeking jobs having a 45% probability of remaining unemployed. Living standards, measured by gross domestic product per capita, were 27% lower than in 2006.
“Restrictions on movement also hinder access to health and other essential services, as 80% of Gaza's population depends on international aid. Living in Gaza in 2022 meant being confined to one of the most densely populated areas in the world, often without electricity and without adequate access to clean water or a proper sewage system.”
Unctad states that in the past, donor aid helped mitigate the impact of the occupation. However, in 2022, the Palestinian government received only $250 million in donor budget support and $300 million for development projects – a decrease from a total of $2 billion in 2008. The share of donor aid in GDP has fallen from 27% to 3% since 2008.
Unemployment remained extremely high at 24% in the occupied Palestinian territories, with rates of 13% in the West Bank and 45% in Gaza. Women and youth are the most affected, the report states.
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