The report, titled ‘The Gaza War: Expected Socio-Economic Impacts on the State of Palestine,’ provides updated estimates on the socio-economic consequences of the prolonged conflict, projecting alarming figures for the region. The State of Palestine's Gross Domestic Product (GDP) has sustained a dramatic plunge of 26.9%, resulting in a loss of US$7.1 billion compared to a 2023 baseline unaffected by war.
UNDP Administrator, Achim Steiner, emphasized the dire implications of the ongoing conflict, stating, “Every additional day that this war continues is exacting huge and compounding costs to Gazans and all Palestinians, now and in the medium and long term.”
According to projections outlined in the report, should the conflict persist for nine months, poverty levels are expected to more than double, reaching 60.7%. This would result in an additional 1.86 million individuals pushed into poverty, with the GDP decreasing by 29% and total losses amounting to US$7.6 billion.
Furthermore, the report warns of a significant decline in the Human Development Index (HDI), indicating a setback in human development in the State of Palestine that may exceed two decades.
The findings of the UNDP-ESCWA report align with the results of the Joint Interim Damage Assessment by the World Bank and the United Nations, which revealed substantial direct damages inflicted on Gaza's infrastructure, equivalent to 97% of the total GDP of the State of Palestine in 2022.
The updated assessment underscores the urgent need for coordinated efforts to support recovery and reconstruction in Gaza and the wider Palestinian territories. UNDP, as the lead agency on early recovery, is collaborating closely with UN agencies and national partners to prepare for the commencement of early recovery initiatives without delay, as conditions allow. (ILKHA)
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