Bethlehem – Ma’an – The World Bank revealed that all residents of the Gaza Strip suffer from poverty, with the poverty rate reaching 100%. It pointed out that inflation exceeded 250% due to the consequences of the ongoing war on the Strip for about a year, while the poverty rate in the West Bank rose from 12% to 28%.
This came in a report issued by the World Bank today, Thursday, entitled “Palestinian Economic Update”, as the war on the Gaza Strip is about to complete its first year, which has caused the displacement of about two million people.
The bank said the Palestinian territories saw a 35% decline in real GDP in the first quarter of 2024, the ‘largest ever.’
‘The Gaza economy shrank by 86% during this period, while the West Bank economy shrank by 25%; unemployment in the Palestinian territories reached record levels and exceeded 50%,’ he said.
The bank expects the Palestinian Authority’s financing gap to worsen, ‘expected to reach $2 billion in 2024 (three times the gap in 2023), posing serious ris
ks to service delivery and potentially leading to systemic collapse.’
The halt in commercial operations in Gaza has left families without income, while prices of basic commodities have risen dramatically, with inflation exceeding 250%, according to the report.
He continued: “The education system in Gaza has collapsed, and the health system has been severely damaged, with 80% of primary care centres no longer operating, and the poverty rate has reached 100%, while in the West Bank it has risen from 12% to 28%.”
He stressed that “the conflict has led to a severe shortage of cash in Gaza, affecting access to humanitarian aid and basic financial services.”
The bank warned of the increasing financial risks of the Palestinian banking sector, due to the increase in its exposure to the public sector, which reached historical levels (the increase in the share of loans provided by banks to the Palestinian government from the total loans provided in the market).
Banks have become the most prominent financier of the
Palestinian government during the current and past two years, by providing loans either to pay part of the public sector wage bill, or to keep it able to provide services.
Source: Maan News Agency