AhlulBayt News Agency: Recent data from the Palestinian Central Bureau of Statistics has shown a severe contraction in the gross domestic product (GDP) of the Gaza Strip, exceeding 82%, amid the continued Israeli war of extermination for the second consecutive year.
According to the data, which documented the economic reality during 2024, unemployment rates have risen to 80% among the population, the majority of whom were daily wage workers or employed by the government in Gaza or affiliated with the Palestinian Authority.
Throughout 2024, most economic activities in Palestine declined compared to the previous year. Construction activity in the Gaza Strip saw a decrease of 98%, amounting to a value of $332 million, followed by industrial activity which declined by 90%, and agricultural activity which fell by 91%.
Furthermore, the services sector declined by 81%, reflecting a sharp and unprecedented drop in the history of economic and commercial sectors, marking the first of its kind in the history of the conflict.
During the Israeli war on the Gaza Strip, which began on October 7, 2023, the majority of commercial activities halted in the early days of the war, while the occupation targeted industrial, commercial, and economic facilities through aerial bombardments and ground military operations.
Even before the war, the unemployment rate ranged between 49% to 52%, rising among graduates and university degree holders to over 60%, and reaching about 80% among females.
The Gaza Strip has suffered for many years from a harsh Israeli blockade that has caused rising rates of poverty and unemployment among the population, leading to increased levels of deprivation and a decline in daily income to about $1. Additionally, food insecurity has risen, with around 80% of the population receiving aid from international and relief agencies.
The occupation has placed dozens of materials and goods on lists prohibiting their entry into the Strip, under the pretext of their use in military industries for Palestinian resistance, depriving the industrial sector of many raw materials and causing the shutdown of dozens of factories. As the war enters its second year with unprecedented negative indicators, the economic and commercial future of the Strip, as well as its industrial sector, appears uncertain and challenging due to the complete destruction of all infrastructure.
Economic experts anticipate further economic contraction if radical and comprehensive interventions continue to be absent, with expectations of worsening economic deterioration and rising rates of unemployment and poverty, especially in Gaza.
Experts also predict an increase in Gaza’s reliance on external aid due to the erosion of the local productive base and the collapse of most economic and commercial sectors, which will deepen the dependency of the Palestinian economy. Additionally, the threat to social and political stability is expected to escalate due to rising unemployment and poverty rates, particularly among youth who face uncertainty about the future and are overwhelmed by frustration and despair.
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According to the data, which documented the economic reality during 2024, unemployment rates have risen to 80% among the population, the majority of whom were daily wage workers or employed by the government in Gaza or affiliated with the Palestinian Authority.
Throughout 2024, most economic activities in Palestine declined compared to the previous year. Construction activity in the Gaza Strip saw a decrease of 98%, amounting to a value of $332 million, followed by industrial activity which declined by 90%, and agricultural activity which fell by 91%.
Furthermore, the services sector declined by 81%, reflecting a sharp and unprecedented drop in the history of economic and commercial sectors, marking the first of its kind in the history of the conflict.
During the Israeli war on the Gaza Strip, which began on October 7, 2023, the majority of commercial activities halted in the early days of the war, while the occupation targeted industrial, commercial, and economic facilities through aerial bombardments and ground military operations.
Even before the war, the unemployment rate ranged between 49% to 52%, rising among graduates and university degree holders to over 60%, and reaching about 80% among females.
The Gaza Strip has suffered for many years from a harsh Israeli blockade that has caused rising rates of poverty and unemployment among the population, leading to increased levels of deprivation and a decline in daily income to about $1. Additionally, food insecurity has risen, with around 80% of the population receiving aid from international and relief agencies.
The occupation has placed dozens of materials and goods on lists prohibiting their entry into the Strip, under the pretext of their use in military industries for Palestinian resistance, depriving the industrial sector of many raw materials and causing the shutdown of dozens of factories. As the war enters its second year with unprecedented negative indicators, the economic and commercial future of the Strip, as well as its industrial sector, appears uncertain and challenging due to the complete destruction of all infrastructure.
Economic experts anticipate further economic contraction if radical and comprehensive interventions continue to be absent, with expectations of worsening economic deterioration and rising rates of unemployment and poverty, especially in Gaza.
Experts also predict an increase in Gaza’s reliance on external aid due to the erosion of the local productive base and the collapse of most economic and commercial sectors, which will deepen the dependency of the Palestinian economy. Additionally, the threat to social and political stability is expected to escalate due to rising unemployment and poverty rates, particularly among youth who face uncertainty about the future and are overwhelmed by frustration and despair.
/129