Gaza economy shrank by more than 80% in 4th quarter due to conflict: World Bank

Gaza economy shrank by more than 80% in 4th quarter due to conflict: World Bank

The World Bank said "almost all economic activity in Gaza has ground to a halt" due to the conflict
The World Bank said "almost all economic activity in Gaza has ground to a halt" due to the conflict. Photo: MOHAMMED ABED / AFP
Source: AFP

The Israel-Hamas war has had a "catastrophic" impact on Gaza's infrastructure and caused its economy to contract by more than 80 percent in the fourth quarter of the year, the World Bank said.

The ongoing conflict has caused widespread damage and destruction across Gaza, and caused a "massive loss of life," the Bank said a statement.

The October 7 Hamas attack resulted in the deaths of about 1,160 people in Israel -- mostly civilians -- according to an AFP tally of Israeli official figures.

Hamas militants also took around 250 hostages -- 130 of whom remain in Gaza, including 30 presumed dead, according to Israel.

Israel's retaliatory campaign has killed almost 30,000 people, mostly women and children, according to the latest count by the Hamas-run health ministry in Gaza.

Beyond the devastating human impact, "Almost all economic activity in Gaza has ground to a halt," the Bank said.

Read also

The Body Shop to shut nearly half of UK shops

"Since the start of the conflict, the Palestinian economy experienced one of largest shocks recorded in recent economic history," it added.

The World Bank pointed to preliminary estimates from the Palestinian Central Bureau of Statistics (PCBS), which found that Gaza's GDP has "plummeted by more than 80 percent" -- from around $670 million in the third quarter to just $90 million in the fourth quarter.

This 80 percent quarterly decline amounts to an annual a drop of 24 percent, the Bank continued, adding that "the observed level of fixed assets damage and destruction is catastrophic."

"Nearly every resident of Gaza will live in poverty, at least in the short term," it said.

Amid the ongoing conflict, the Bank announced a $30 million grant Thursday "to help ensure the continuity of crucial education for children."

Read also

Eiffel Tower closed again as staff extend strike: union

"This grant will contribute to the education sector to help ensure that learners don't miss out on essential education," it said in a statement.

New feature: Сheck out news that is picked for YOU ➡️ click on “Recommended for you” and enjoy!

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.