The poverty rate in Palestine is expected to reach 74% in 2024 because of the war with Israel, impacting 4 million people, according to a UN report

BY THE ARAB TODAY Oct 22, 2024

The poverty rate in Palestine is expected to reach 74% in 2024 because of the war with Israel, impacting 4 million people, according to a UN report
The poverty rate in Palestine is expected to reach 74% in 2024 because of the war with Israel, impacting 4 million people, according to a UN report

The poverty rate in Palestine is expected to reach 74% in 2024 because of the war with Israel, impacting 4 million people, according to a UN report

Poverty in Palestine is expected to increase to 74.3% in 2024, affecting 4.1 million people, according to a report by UN agencies.

Palestinian economy

  • A report by the UN says that 2.6 million more Palestinians will fall into poverty.
  • Palestine’s economy will shrink by 35.1% in 2024, compared to before the war began in October 2023. Unemployment will rise to 49.9% this year.
  • The war will set Gaza’s development back by more than 69 years.
  • Palestine cannot rebuild its economy or grow with just humanitarian aid. It needs better support to recover and attract investments for long-term growth.
  • Since the war began in October, over 42,000 people have died, according to Gaza’s health authorities.

Key Quote

“Projections in this new report show that, along with the immediate suffering and loss of lives, a long-term crisis is growing – one that threatens the future of Palestinians for generations,” said UNDP Administrator Achim Steiner.

He added, “Even if aid is given every year, the economy might not recover to pre-crisis levels for at least 10 years. To help the Palestinian people rebuild sustainably, a solid recovery plan must be put in place during the early stages of humanitarian aid efforts.”

Humanitarian Aid

The UNDP stressed that focused humanitarian aid will be crucial to rebuilding Gaza after the war.

Rola Dashti, Executive Secretary of ESCWA, said, “Even with yearly aid, it could take more than a decade for the economy to recover. A strong recovery plan is needed as soon as the situation allows.” She also noted that their report highlights how millions of lives are being devastated and decades of development efforts are being lost.

The report assumes that without early recovery efforts, the current level of aid will stay the same. In a limited recovery scenario, humanitarian aid is estimated to be about $280 million per year.

Regardless of the scenario, both forecasts suggest it will take at least 10 years for Gaza’s economy to return to pre-war levels.

Published: 22nd October 2024

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