A research paper presented by the Palestinian Economic Policy Research Institute (MAS) concluded that the Palestinian economy is exposed to unprecedented difficulties and major repercussions as a result of the ongoing Israeli aggression against the Gaza Strip and the West Bank.
The paper – a copy of which was seen by Al Jazeera Net – shows that at the end of the second month of the war, there is a severe paralysis of internal movement in the West Bank, which affects the paths of internal and external trade as well as the access of employees to their work, and the poverty rate has also worsened to the point that the United Nations Program estimates United Development Bank said that the poverty rate in Palestine will increase to 35.8% by the end of the second month of the war, compared to 26.7% before the aggression.
The paper showed that the Palestinian economy is facing severe shocks to the level of unemployment and basic income, as the International Labor Organization estimates a 61% decline in employment in the Gaza Strip and a 24% decline in the West Bank, with 182,000 currently unemployed in the Strip, corresponding to the loss of 208,000 workers. Their jobs are in the West Bank, largely due to the end of job opportunities in Israel and the settlements.
This overall loss of jobs resulted in labor income losses estimated at approximately $480 million in the first month of the war.
The state of the economy on the eve of the aggression
The paper indicated that Gaza’s economy began to decline sharply after 2006 due to the siege and wars, and its economy incurred losses of more than $16.5 billion during the last 15 years (excluding the last war). The paper also showed that the unemployment rate in Gaza is the highest in the world, at 45% over the past 10 years.
When comparing the Gaza economy to the size of the Israeli economy; There is a huge difference, as the gross domestic product in Israel is about 146 times that of Gaza, and the per capita income in Israel is 175 times the per capita income in Gaza.
The paper also shows that there are clear differences in the main economic indicators between the West Bank and Gaza, and these differences are a result of the political conditions to which the sector is exposed. The Gaza economy used to constitute 35% of the Palestinian economy and now it constitutes 17% in recent years. There is also a clear distinguishing mark due to the blockade. It is that Gaza’s exports have become almost non-existent, and did not exceed $11 million annually at their best instead of $550 million, but 99% of Palestine’s exports come from the West Bank. The paper also indicates that Gaza’s imports do not constitute more than 11% of Palestine’s imports, and this is not proportionate to the population percentage of Gaza, which constitutes 40% of the population of Palestine.
Attacks on the agricultural sector
The paper showed that there were many attacks and challenges facing vegetable farmers, as many farmers were subjected to direct physical attacks. About 367 attacks were recorded during the past two months by the Farmers’ Union, and these attacks included beatings, arrests, shooting, and threats with weapons.
Regarding attacks on property, the paper showed that 17% of farmers were subjected to attacks on their property and crops, which included burning, destruction, theft, and uprooting of trees. These attacks were concentrated in the areas near the wall, as well as in the areas of Jenin, southern Hebron, and southern Bethlehem, in addition to the inability of many to Farmers have access to their land.
The relationship is on both sides of the green line
The paper shows that historical evidence shows that the volume of economic relations between the two parties is shrinking significantly as a result of the Israeli escalation against the Palestinians in the West Bank and Gaza Strip, and this will lead to a decrease in the volume of commercial exchanges and purchasing activity, and thus cash flows will be reduced, and this will result in a loss for Palestinian economic establishments in the sectors Mainly trade and tourism, especially those that depend on the influx of internal Palestinians for their activity. As a result of the Israeli war on the Gaza Strip, the initial losses on shopping activities from within the Green Line to the West Bank areas during the past two months are estimated at approximately 350 million shekels.
