The World Bank reported on Thursday that the entire population of the Gaza Strip is suffering from poverty, with a staggering rate of 100%.
In its latest report titled “Palestinian Economic Update,” the World Bank highlighted the dire situation as the first anniversary of the ongoing Israeli aggression approaches, which has displaced nearly two million people. The report noted that inflation has soared beyond 250% due to the ongoing conflict in the region.
The report indicated a 35% decline in the real GDP of the Palestinian territories during the first quarter of 2024, marking the largest contraction ever recorded. The economy of Gaza shrank by 86% during this period, while the West Bank’s economy contracted by 25%. Unemployment rates in the Palestinian territories have reached unprecedented levels, exceeding 50%.
The World Bank also projected that the financing gap for the Palestinian Authority is expected to worsen, potentially reaching $2 billion in 2024—three times the gap recorded in 2023. This situation poses serious risks to service delivery and could lead to systemic collapse.
The halt of business operations in Gaza has left families without income, while the prices of essential goods have skyrocketed, contributing to an inflation rate surpassing 250%, as detailed in the report.
Additionally, the report stated that the educational system in Gaza has collapsed, and the healthcare system has suffered significantly, with 80% of primary healthcare centers no longer operational. The poverty rate in Gaza has reached a staggering 100%, while in the West Bank, it has increased from 12% to 28%.
The report emphasized that the ongoing conflict has created a severe cash shortage in Gaza, affecting access to humanitarian aid and essential financial services.
Furthermore, the World Bank warned of increasing financial risks for the Palestinian banking sector, highlighting the rising exposure to the public sector, which has reached historic levels—an increase in the share of loans provided by banks to the Palestinian government relative to the total loans available in the market.
