More than 120 days of conflict with unprecedented damage, Gaza Strip 'devours' tens of billions of dollars and decades of economic recovery

The conflict in the Gaza Strip is causing unprecedented levels of devastation to the economy , so the territory needs tens of billions of dollars and decades to recover.

The Gaza Strip is suffering unprecedented levels of damage after more than 120 days of conflict. (Source: Shutterstock)

The above assessment was announced by the United Nations Conference on Trade and Development (UNCTAD) on January 31.

According to UNCTAD, the preliminary report on the socio-economic impact of the crisis takes into account the loss of GDP, the recovery time and the long-term impacts on poverty and household spending.

The report estimates that Gaza’s annual GDP will fall by $655 million, or 24%, in 2023. About 80% of the territory’s population relies on international aid; two-thirds of the population lives below the poverty line and unemployment was as high as 45% before the conflict broke out.

Gazans lack access to clean water and electricity, and much of the damage from Israel’s past military operations remains undone.

UNCTAD predicts that Gaza will need decades to restore its socio-economic conditions to pre-conflict levels, and this will depend significantly on foreign aid.

UNCTAD report urges the international community to act immediately before it is too late.

The report was released on the same day as the United Nations Security Council met to discuss the Middle East crisis, the International Court of Justice's (ICJ) provisional rulings on allegations of genocide in Gaza and the humanitarian situation in the coastal strip.

During the meeting, UN Secretary-General Antonio Guterres said: "The situation of casualties, violence, suffering, destruction and hunger that has lasted for more than 120 days in Gaza is a common pain of humanity and human conscience."

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