West Bank and Gaza

Since the cross-border assault led by Hamas against Israel on October 7, 2023, and the subsequent Israeli retaliation, the West Bank and Gaza have experienced a devastating loss of life and widespread destruction. This conflict has had catastrophic repercussions on their economy.

The available data only provides a snapshot of the Palestinian economy prior to the conflict. Even before this event, the economy was modest, with a nominal GDP below $20 billion, according to estimates from the U.S. Department of State. Small and medium-sized enterprises, predominantly family-owned, represented 99% of business activities and employed fewer than 20 people. The free movement of goods and people was curtailed, and growth was hindered by restrictions on foreign investments, outdated infrastructure and inconsistent water and energy supply.

Still, albeit high unemployment persisted and worsened in recent years, the Palestinian labor force is young and well-educated, boasting a 98% literacy rate. The conflict has cast a long shadow over the future of the five million citizens of the West Bank and Gaza, a significant number of whom are currently displaced.