Gaza Faces Unprecedented Poverty Crisis Amid Ongoing Conflict

Friday 18 October 2024 - 14:30

By: Dakir Madiha

Gaza Faces Unprecedented Poverty Crisis Amid Ongoing Conflict

In a stark report released by the International Labor Organization (ILO), it has been revealed that nearly the entire population of Gaza now lives below the poverty line. This alarming statistic highlights the catastrophic economic collapse following a year marked by intense conflict and destruction, leaving families grappling with the dire consequences of prolonged violence.

Ruba Jaradat, the ILO’s Regional Director for the Arab States, commented on the situation, stating, “The impact of the war in Gaza has extended far beyond the loss of life and destruction. It has fundamentally reshaped Gaza’s socio-economic landscape and severely impacted the West Bank’s economy and labor market. This devastation will reverberate for generations.”

The ILO's findings indicate that the unemployment rate in Gaza has surged to a staggering 79.7%, leaving the majority of the workforce inactive as economic activities have ground to a near halt. The local economy's collapse is underscored by an estimated 84.7% drop in GDP compared to the previous year, a decline primarily driven by the extensive destruction of homes, businesses, and critical infrastructure.

As families in Gaza struggle to meet basic needs, the economic turmoil is exacerbated by soaring inflation, which reached a staggering 248% year-on-year by August 2024. This sharp increase in prices further undermines households' ability to afford essential goods and services.

The situation in the West Bank is similarly alarming, with projections indicating that the poverty rate could more than double from 12% in 2023 to 28% by mid-2024. The unemployment rate in the West Bank has averaged 34.9% over the past year, and the region has experienced a significant contraction of 21.7% in GDP.

The ILO report paints a grim picture of the humanitarian crisis unfolding in Gaza and the West Bank, where the economic repercussions of ongoing conflict continue to mount, leaving communities in a state of despair and uncertainty.