MuhammadSalis 
Key Highlights:
- Historic Economic Contraction: A new UNCTAD report confirms the Palestinian economy has suffered its most severe collapse in history due to two years of war and restrictions.
- Gaza in Crisis: The situation in the Gaza Strip is described as the “most severe economic crisis on record,” reversing decades of progress.
- Casualties Mount Despite Ceasefire: Over 300 people have been killed in the last month alone, despite an ongoing six-week ceasefire.
The economy of the occupied Palestinian territory has plummeted into its most severe contraction on record, following two years of relentless attacks and tightening restrictions.
A stark warning issued by the UN Conference on Trade and Development (UNCTAD) states that the devastation has “reversed decades of socioeconomic progress” across the Gaza Strip and the West Bank, including East Jerusalem. The report attributes this historic collapse to extensive damage to infrastructure, productive assets, and public services.
According to the findings, the situation in Gaza now constitutes “the most severe economic crisis on record.”
War Reverses Decades of Growth
The release of these findings comes as Israeli military operations in Gaza continue, despite a six-week ceasefire agreement currently in place between Israel and the Palestinian group Hamas.
CCNBNews reports that while the truce was intended to halt hostilities, violence has persisted. Since the ceasefire began last month, more than 300 people have been killed, further destabilizing any efforts toward economic recovery.
Israel’s assault on the territory began on October 7, 2023, following an attack on southern Israel by Hamas and other Palestinian groups. That initial attack resulted in an estimated 1,139 deaths, with approximately 240 people taken captive.
A “Total Stranglehold”
In the two years since the war began, Israel has unleashed a massive bombing campaign and significantly tightened its blockade on Gaza. UNCTAD notes that this has turned what was previously a 16-year siege into a “total stranglehold” on the enclave’s population and economy.
The human toll has been catastrophic. The ongoing assaults have killed at least 69,733 people and wounded another 170,863.
The economic fallout has been equally devastating, wiping out livelihoods and infrastructure that will take years, if not decades, to rebuild. The UN body warns that without an immediate and sustained cessation of hostilities and the lifting of restrictions, the economic implosion will continue to deepen.
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