Palestinians walk down a street with their belongings as they leave their homes in Beit Lahia after Israeli bombing (inset) there, in the northern Gaza Strip on Tuesday — AFP GAZA, Oct 22 (Reuters): The war between Israel and Hamas has devastated the Palestinian economy and left nearly all of Gaza's population in poverty, with quality of life indicators such as health and education knocked back 70 years, the United Nations' development agency said on Tuesday.
Launching a study on the war's socioeconomic impacts, the UNDP's Chitose Noguchi said the economy of the Palestinian territories - the Gaza Strip and the Israeli-occupied West Bank - was now 35 percent smaller than it was at the start of Israel's invasion of Gaza a year ago.
By some measures the poverty level in Gaza was now approaching 100 percent as a result of the disruption, with unemployment now at 80 percent, Noguchi said.
"The state of Palestine is experiencing unprecedented levels of setbacks," she told a UN press conference in Geneva over a sometimes crackling line from Deir Al-Balah. "For Gaza, reversing development by an estimated 70 years to 1955."
Even under optimal conditions, with international aid remaining at current levels and flowing into Gaza and the West Bank unhindered, it would still take at least a decade for economic output to recover to pre-war levels, she said.
The war, launched by Israel after attacks by Hamas on Israeli territory on Oct 7 last year that killed about 1,200 people, has brought immense destruction to the Gaza Strip.
Schools, hospitals and other essential infrastructure have been razed to the ground. Nearly 43,000 Palestinians have been killed in Gaza, according to health ministry figures.
Some 3.3 million Palestinians, 2.3 million of them in Gaza and 1.5 million of them children, need urgent humanitarian assistance, the report said.
The cost of repairing damaged infrastructure was expected to run to $18.5 billion, almost the entire annual economic output of the Palestinian territories in 2022.
The war had taken a similarly severe toll on human capital, the report added, with 625,000 students in Gaza having no access to education at the end of September and 93 percent of school buildings severely damaged.
The situation was similar with regard to healthcare. A total of 986 health workers had been killed by the end of September, and less than half of primary healthcare centres were even partially functional.
Another report adds: The poverty rate across the Palestinian territories will almost double this year to 74.3 percent after months of fighting in Gaza, according to a report by the UN Development Programme (UNDP) released Tuesday.
"The immediate consequence of the war, not just in physical infrastructure destruction, but also in terms of poverty, livelihoods and loss of livelihoods, is enormous," Achim Steiner, head of the UNDP, told AFP.
The poverty rate had been 38.8 percent at the end of 2023 but another 2.61 million Palestinians fell into poverty this year, bringing the total to 4.1 million.
"It's quite clear from this socio-economic assessment, that the level of destruction has set back the state of Palestine by years, if not decades, in terms of its development pathway," Steiner said.
The study estimates that this year unemployment in the Palestinian territories could rise to 49.9 percent and that GDP will be 35.1 percent lower than without the war in Gaza.
He said that even if humanitarian aid is delivered each year, the Palestinian economy will not return to its pre-crisis levels for a decade or more.
Recovery will also require support to rebuild destroyed capital and the lifting of "stifling economic conditions".
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