According to a report from the United Nations Conference on Trade and Development, the ongoing conflict between Israel and Hamas has led to the complete collapse of Gaza’s economy, with estimates suggesting it could take up to 350 years to restore it to pre-war levels. This dire prediction comes in light of a report submitted to the UN General Assembly detailing the economic costs of the war, which has severely devastated the remaining economic structures and infrastructure in Gaza since hostilities began on October 7 of last year.
Before the conflict, Gaza’s economy was already struggling, but it is now in a state of complete standstill, exacerbated by critical shortages of water, electricity, and fuel. Basic humanitarian medical and food services are barely operational under these conditions.
The statistics are staggering: construction output has plunged by 96%, agricultural output has fallen by 93%, manufacturing is down by 92%, and the services sector has shrunk by 76%. In the first quarter of 2024, unemployment reached an alarming 81.7%, with prospects worsening as military actions continue.
The report emphasizes that achieving a ceasefire is essential, as it will take Gaza an estimated 350 years to recover its Gross Domestic Product (GDP) to the levels seen between 2007 and 2022.
Meanwhile, U.S. Secretary of State Antony Blinken has once again urged Israeli leaders to commit to a ceasefire in Gaza. The situation remains dire in northern Gaza, where fighting intensifies, and civilians are in desperate need of aid, as Israel continues its operations against Lebanese targets.
This marks Blinken’s 11th trip to the Middle East since Hamas launched its offensive over a year ago, and it comes as tensions have escalated following a conflict involving Iranian-supported militia Hezbollah last month.
During a meeting with Israeli President Isaac Herzog in Tel Aviv, Blinken highlighted the recent Israeli military action that resulted in the death of Hamas leader Yahya Sinwar, indicating this could create an opportunity for a ceasefire and the release of Israeli hostages.
“I firmly believe that Sinwar’s death has indeed created an important opportunity for Israel to bring its hostages home, end the conflict, and ensure its security,” Blinken stated.
Washington further warned that if Israel does not take swift action to facilitate humanitarian aid into Gaza, the U.S. may reconsider portions of its military assistance to Israel.
