OCCUPIED JERUSALEM — The
Palestinian Central Bureau ofStatistics and Monetary Authority report a severe economic downturn in 2023
resulting in a 33 percent overall reduction in Gross Domestic Production (GDP)
with Gaza witnessing an 80 percent contraction in the fourth quarter of 2023
(Q4), leading to a 74 percent unemployment spike. The West Bank also suffered a
22 percent economic decline and a 29 percent unemployment rate, Al-Mamlaka TV
reported.
اضافة اعلان
The continuous Israeli assault on the
Gaza Strip, coupled
with economic disruptions in the West Bank caused a $1 billion loss, impacting
Palestinian economic growth projections. The economic consequences include the
destruction of vital infrastructure, a demographic strain, and severe shortages
of water, electricity, fuel, medicines, and essential healthcare supplies.
Economic activities, including construction, agriculture, services, and
industry, all experienced significant declines in Q4 2023 compared to the
previous year, contributing to an overall economic recession in Palestine.
Palestinian economy
plummets: 33.1 percent consumption drop, 30 percent investment decline in Q4
2023In Q4 of 2023, the Palestinian economy faced severe
challenges, with a 33.1 percent overall consumption decrease (21 percent in the
West Bank, and 80 percent in Gaza). Private and public consumption both dropped
by 33 percent, while government consumption fell by 33.4%. Total investment
(gross capital formation) also declined by 30 percent. On an annual basis for
2023, per capita GDP decreased by 8 percent, and private and
public consumption levels decreased by 3 percent and 8 percent, respectively, along with a 5
percent drop in total investment.
The international trade volume witnessed a sharp decline in
Q4 2023, with a 33 percent decrease in both exports and imports. The trade
deficit also contracted by 33 percent, primarily due to the threefold value of
imports compared to exports. The strip’s share of trade, once 23 percent,
dropped to less than 4 percent in Q4 2023. Furthermore, supply chain
disruptions during the recent conflict contributed to a health crisis in the
strip, exacerbating shortages of medicines and health supplies.
Additionally, The
Consumer Price Index (CPI) rose by
approximately 6 percent in 2023 compared to 2022, impacting Palestinian
households and reducing purchasing power by 5.5 percent. The strip experienced
a 30 percent price hike due to the recent Israeli assault, while the West Bank
saw a 5 percent increase. The poverty levels in Palestine reached unprecedented
levels, especially in the strip.
Looking ahead to 2024, the Palestinian economy is expected
to continue its decline, influenced by the lingering effects of the recent
Israeli occupation’s aggression. The Gaza Strip, extensively damaged during the
conflict, is anticipated to face ongoing challenges, impacting local demand and
economic activity in the West Bank as well. Predictions suggest a nearly 5
percent decline in economic performance for 2024, coupled with a rise in
unemployment to 35.1 percent.
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