The Gaza war has caused massive loss of life and infrastructure damage, which will have short- and long-term socioeconomic consequences, and cause long-term deprivation and a reduction in human development that will propagate to all the occupied Palestinian territory. The shock to Palestinian economic activity has been severe as a result of the total siege of Gaza, destruction of capital, forced displacement, restrictions on movement of people and goods in the West Bank. Early estimates indicate that the gross domestic product (GDP) loss in 2023 could range between 4 and 12 per cent, and between 4 and 9 per cent of GDP in 2024, compared with pre-war estimates, depending on the duration of the war. Poverty is also expected to rise sharply by between 20 and 45 per cent, depending on the duration of the war. The economic consequences of the war will have direct and indirect effects on the humanitarian situation, and vice versa, including large-scale displacement. Economic recovery in Gaza following a ceasefire will not be immediate, considering the large-scale destruction and uncertain access to resources, including materials and equipment owing to the siege on Gaza. The regional impacts of the Gaza war are expected to be significant, with implications for the entire Palestinian population and the region as a whole.
