Gaza needs billions of dollars in international economic aid to offset years of restrictions that have crippled its economy and hindered its development, the United Nations Conference on Trade and Development (UNCTAD) said on Wednesday in its annual report on the Palestinian economy, according to Reuters and AFP, citing Agerpres.

The United Nations, in its 2022 report, highlighted the deplorable economic conditions in Gaza even before Israel attacked the enclave in response to a bloody October 7 attack by Hamas in southern Israel.

“Donors and the international community must provide substantial economic assistance to restore the massive damage Gaza has suffered as a result of the restrictions, prolonged blockade and frequent military operations that have stifled the economy and destroyed infrastructure,” the report said.

“While donor aid is important to help the people of Gaza, it should not be seen as a substitute for ending restrictions and blockades and requiring Israel and all parties to undertake obligations under international law,” the UNCTAD report added.

“The economic impact of the current humanitarian crisis in Gaza is impossible to quantify,” Richard Kozul-Wright, UNCTAD’s director of globalization and development strategies, told a news conference.

“The report documents the serious economic problems faced by the occupied population, which in the case of Gaza are compounded by the economic blockade that began in 2007, as well as frequent military operations,” he added.

“Palestinian GDP per capita is only 8% of Israel’s”

The publication of this report took place at the height of the war between Israel and Hamas, triggered by an attack by the Islamist movement in southern Israel on October 7.

Hamas said on Wednesday that at least 6,546 people, mostly civilians, including 2,704 children, had been killed in the Gaza Strip during Israel’s retaliatory bombings.

The 2022 Palestinian Economic Report states that “a decade-long blockade has devastated Gaza’s economy, leaving 80% of the population dependent on international aid.”

“Marked by heightened political tensions and a protracted peace process, 2022 was one of the worst in recent Palestinian history,” UNCTAD said.

“Gross domestic product (GDP) grew by 3.9%, but the economy has not yet fully recovered from the shock caused by COVID-19. Since the start of the pandemic, real GDP has declined by 11.3% in 2020 and then increased by 7% in 2021 from a very low level,” the UN body said.

“Palestinian GDP per capita is now only 8% of Israel’s,” he notes.

According to the report, unemployment has reached 45% in the Gaza Strip and 13% in the West Bank.

“The vicious circle of destruction and partial reconstruction must be broken by negotiating a peaceful solution based on international law and relevant UN and Security Council resolutions to end hostilities, and by increasing donor aid to rebuild war-torn economies,” UNCTAD concluded in his report.

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