ALBAWABA - The World Bank conducted a preliminary assessment on Tuesday of the aftermath of the Israeli military operations in the Gaza Strip, anticipating a contraction of 3.7% in the Palestinian economy by the end of the current year.
Seeking to measure the impact of the war on an already struggling Palestinian economy, the World Bank had initially projected a growth rate of 3.2% in September. However, it now anticipates a 3.7% contraction by the year-end, with more tangible effects of the ongoing conflict expected to be felt in 2024, projecting a total contraction of 6%.
These estimates are subject to adjustments based on the duration and consequences of the war, including the destruction in Gaza, restrictions on the movement of Palestinians within the West Bank, the loss of jobs for Palestinians working in Israel, and the slowdown in the Israeli economy, which significantly affects Palestinians.
The World Bank stated in its report that it "expects a reduction in the intensity of the conflict by 2024, but the Israeli government will impose strict restrictions on movement and entry into (the Gaza Strip), limiting economic activity and trade."
Naturally, the extent of damage in the Gaza Strip will have an impact, even though Gaza's economy represents only 15% of the total Palestinian GDP. The World Bank highlighted that, according to data collected from various sources, the scale of damage became substantial by the end of November during the ceasefire. At that point, 60% of information technology and communication equipment was either damaged or completely destroyed, along with over 60% of healthcare and educational infrastructure, 70% of commercial infrastructure, and even half of the road network.
