Most of the enterprises and agricultural assets in the enclave have been “destroyed.”

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An UNCTAD report released today describes the devastation in Gaza, with many businesses damaged or destroyed and agricultural assets suffering 80-96% damage. This has caused “staggering” economic devastation, exceeding any previous military conflict. The economy in Gaza is estimated to have shrunk to one-sixth of its previous size.

Continuing on the topic, the Israeli military operation caused a shock and a GDP decline of 81% in Gaza in the fourth quarter of 2023. This led to a serious deterioration in the economy, affecting trade and transport. In the West Bank, the situation was also complicated: GDP fell by 4.5%, unemployment increased from 12.9% to 32%, and workers in Arab settlements in Judea and Samaria reported a decrease in activity.

Israel's finance minister presented a budget for 2025 with a deficit of 4% of GDP, requiring adjustments of NIS 35 billion. It proposes freezing salaries, taxes and benefits, including for the poor, while increasing the tax rate from 10% to 14%.

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