Gaza Poverty Rate Hits 100 Percent, West Bank Also Suffers Economic Decline

Kuwait city: A new report from the International Labor Organization (ILO) has disclosed alarming levels of poverty and unemployment in the Gaza Strip, with nearly the entire population living below the poverty line. The report also details a significant economic downturn in the West Bank, exacerbated by the ongoing regional conflict. According to Kuwait News Agency, the ILO report released Thursday highlights that the poverty rate in the Gaza Strip has reached nearly 100 percent, with unemployment surging to about 80 percent. This dramatic increase in unemployment and poverty is primarily attributed to the ongoing war, which has caused widespread economic disruption. The West Bank has not been spared, experiencing a doubling of its poverty rate from 12 percent in 2023 to 28 percent by mid-2024. The report also noted a substantial decline in real GDP across the occupied Palestinian territories (OPT), with an average decrease of 32.2 percent over the past year. Specifically, the Gaza Strip's GDP plummeted by a staggering 84.7 percent, while the West Bank saw a contraction of 21.7 percent compared to the previous 12 months. Moreover, key sectors such as construction and manufacturing, which includes mining, water, and electricity, witnessed significant declines, dropping by 47.3 percent and 35.4 percent, respectively. The information and communication services sector also saw a reduction of 18.5 percent. Ruba Jaradat, the ILO's director for the Arab region, commented on the findings, stating that the impact of the war in Gaza extends far beyond the immediate loss of life and destruction. It has fundamentally altered the socio-economic landscape of the region, severely affecting both Gaza and the West Bank's economies and labor markets. This report marks the fifth in a series of assessments conducted by the ILO in collaboration with the Palestinian Central Bureau of Statistics, focusing on the war's effects on Gaza's labor market and the broader economy in the OPT.