The program warned that without lifting economic restrictions and enabling recovery and investment in development, the Palestinian economy may not be able to restore pre-war levels and move forward relying on humanitarian aid alone.
Recovery and reconstruction
Drawing program reportUnited Nations The UNDP noted that the comprehensive recovery and reconstruction plan, which combines humanitarian aid and strategic investments in recovery and reconstruction, in addition to lifting economic restrictions and enhancing conditions conducive to recovery, can help put the Palestinian economy on a reform path to realign it with Palestinian development plans by 2034.
The program said this scenario could only be achieved if recovery efforts were not constrained.
Achim Steiner, Director of the United Nations Program, stated in the report that expectations confirm that the future of the Palestinians for future generations is at risk, and that even if humanitarian aid is provided every year, the economy may not regain its pre-crisis level for a decade or more.
The report said that, within the framework of the unrestricted early recovery scenario, the restrictions imposed on Palestinian workers would be lifted, and the withheld clearance revenues would be restored to Palestinian AuthorityIn addition to $280 million in humanitarian aid, $290 million is allocated annually to recovery efforts.
He added that the result will be an increase in productivity by 1% annually, which will enable the economy to recover and put Palestinian development back on track.
Repercussions of the war
The report said that among other key findings of the evaluation is that by the end of 2024, the level of development, measured by the Human Development Index, may decline to levels that have not occurred since the beginning of the country’s Human Development Index calculations. Palestine In 2004.
The organization’s assessment predicts that the Human Development Index for the State of Palestine will fall to 0.643, the estimated level for the year 2000, delaying development by 24 years, and for Gaza it will fall to 0.408, the estimated level for 1955, erasing more than 69 years of progress. As for the West Bank, it will decrease to 0.676, reflecting a loss of 16 years, and it is likely to get worse if military incursions into the West Bank expand.
Devastated economy
In its latest case report Palestinian economy UNCTAD found that the scale of the staggering economic devastation and unprecedented decline in economic activity far exceeded the impact of all previous military confrontations in the Strip since 2008.
The organization also revealed that Gaza’s GDP fell by 81 percent in the last quarter of 2023, leading to a 22 percent contraction for the entire year, and by mid-2024 Gaza’s economy had shrunk to less than a sixth of its level in 2022.
The Palestinian Central Bureau of Statistics also indicated a sharp decline in the West Bank’s gross domestic product by 30 percent.
