HomeEconomyGaza's economy shrank by 80% in the fourth quarter, World Bank reports

Gaza’s economy shrank by 80% in the fourth quarter, World Bank reports

GDP fell from around 670 million to only 90 million. The institution evokes “one of the most important shocks recorded in recent economic history.”

When humanitarian disaster rhymes with economic stagnation. Gaza’s economy shrank more than 80% in the fourth quarter of the year, the World Bank reported Thursday, which also announced a $30 million grant to maintain children’s education.

Gaza’s gross domestic product (GDP) “fell more than 80%” in the fourth quarter of 2023 – the three months from October to December – compared to the third quarter, going from about $670 million to just $90 million, according to the World Bank. it said in a statement, citing preliminary estimates from the Palestinian Central Bureau of Statistics.

This quarterly drop of 80% is equivalent to an annual drop of 24%, details the World Bank, which specifies that “the observed level of damage and destruction of fixed assets is catastrophic.” Beyond the devastating human impact, “almost all economic activity in Gaza is paralyzed,” the World Bank said.

“Clashes”

“Since the start of the conflict, the Palestinian economy has experienced one of the most significant shocks in recent economic history,” it states, and “almost all Gazans will live in poverty, or less so in the short term.” .

The World Bank on Thursday also announced a $30 million grant “to help ensure the continuity of crucial education for children.” “This grant will contribute to the education sector to ensure that students are not left without basic education,” he said in a statement.

The unprecedented attack launched on October 7 by Hamas commandos infiltrated in southern Israel left more than 1,160 dead, mostly civilians, according to an AFP count based on official Israeli data. In retaliation, Israel vowed to annihilate Hamas and launched an offensive that left 29,410 dead in Gaza, the vast majority civilians, according to Hamas’ Health Ministry.

Author: TL with AFP
Source: BFM TV

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