Palestine’s GDP Contracts 28% and Unemployment Hits 51% in 2024

Palestine’s economy has taken a major hit in 2024, with the country’s Gross Domestic Product (GDP) contracting by 28% and unemployment soaring to a staggering 51%. The Ministry of Economy in Ramallah attributed these severe declines to the devastating impact of the Israeli military operations in Gaza and the reduction of tax funds, which Israel collects on behalf of the Palestinian Authority.

According to the ministry’s statement, Palestine is enduring an “unprecedented shock” due to the ongoing conflict and restrictions on trade, which have crippled economic activities. The ministry also reported an 11% drop in trade exchanges between Palestine and the outside world, further exacerbating the region’s economic challenges.

Impact of Israeli Military Operations on Gaza and the West Bank

The ongoing Israeli military operations have led to the collapse of Gaza’s economic infrastructure. Israeli incursions, destruction of vital infrastructure, and the closure of key crossings have severely hindered Gaza’s economy. Similarly, the West Bank has witnessed a sharp decline in economic activity, as restrictions on movement and goods continue to take their toll.

Since October 2023, Israel has been engaged in large-scale offensive operations against Hamas in Gaza, following a deadly attack that left around 1,200 Israelis dead and 250 hostages taken. This conflict has caused devastating casualties on both sides. As of the latest reports, Gaza’s death toll has reached 45,854, while over 820 Palestinians have been killed in the West Bank due to Israeli gunfire and bombings.

UNRWA Faces Ban, Threatening Essential Refugee Services

The humanitarian situation has been further exacerbated by the potential closure of the UN Relief and Works Agency for Palestine Refugees in the Near East (UNRWA). The agency has warned that an impending Israeli ban could force it to halt its operations by the end of January, putting millions of Palestinian refugees at risk.

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In a statement, UNRWA emphasized that without the agency’s support, there would be no alternative to continue providing critical services to Palestinian refugees. The United Nations has called on Israel’s Knesset to reverse the decision, warning that further harm could be caused to displaced populations.

Global Calls for Humanitarian Intervention and Peace Efforts

As Palestine faces economic collapse, skyrocketing unemployment, and increasing casualties from the ongoing conflict, the international community continues to push for urgent humanitarian intervention and renewed peace efforts. The ongoing crisis highlights the desperate need for a solution to alleviate the suffering of Palestinians and address the economic devastation caused by the conflict.