Cairo, Egypt – Even with US$280mn in annual humanitarian aid for ten years, the Palestinian economy would not return to pre-war levels or meet its development goals.
The stark warning was issued in a report released on Monday by United Nations Development Programme (UNDP) and the United Nations Economic and Social Commission for Western Asia (ESCWA).
UNDP highlighted a looming ‘developmental emergency’ in Gaza, exacerbated by ongoing conflict, which has reversed progress by nearly seven decades.
The report projected Palestine’s GDP would shrink by 35% by the end of 2024, dropping from pre-war estimate of US$20.2bn to US$13.1bn.
This economic decline is not limited to Gaza but affects the entire Palestinian territory, with dire consequences for both employment and poverty rates.
In Gaza alone, unemployment has soared to 80%, while nearly half of the Palestinian population is now jobless. The broader impact of the war will see three out of four Palestinians live below the poverty line by 2024, affecting over 4.1mn people, including 2.61mn falling into poverty for the first time.
The situation is described as a significant setback in development, with the Human Development Index for Palestine regressing by 24 years. In Gaza, the scale of devastation has plunged the strip back to levels recorded in 1955 – a loss of nearly 69 years of progress.
Chitose Noguchi, Deputy Special Representative of UNDP, stressed the fact that while recovery is possible, humanitarian aid alone is insufficient. “Palestine’s economy will struggle to regain pre-war levels without significant long-term development investments,” Chitose said, calling for large-scale, multi-sectoral recovery interventions to restore livelihoods and rebuild infrastructure.
She further highlighted the need for lifting current restrictions, including movement barriers on workers and withholding revenues of the Palestinian Authority, which continue to undermine economic stability.
Chitose also warned that the situation in Gaza reflects the broader challenges facing the Arab region, which accounts for 31% of the world’s conflicts and is home to 10% of the global refugee population, despite housing less than 6% of the global population.
UNDP called for strategic investments in both immediate humanitarian needs and long-term development, not only in Gaza but also in crisis-affected areas such as Lebanon and Syria. Without such efforts, Chitose cautioned that the future of millions remains uncertain, with a heightened risk of further destabilisation in the region.
© 2021 Apex Press and Publishing. All Rights Reserved. Powered by Mesdac