The comprehensive evaluation conducted by the United Nations Development Programme (UNDP) and the Economic and Social Commission for Western Asia (ESCWA) highlights alarming initial socio-economic impacts of the ongoing conflict. The report warns that poverty rates could rise sharply, with an anticipated drop in Gross Domestic Product (GDP) by 8.4 percent, translating into a staggering economic loss of approximately $1.7 billion. This situation underscores the urgent need for a ceasefire and the continuous provision of humanitarian assistance as a vital first step towards recovery.

In light of the ongoing tragedy, the UN agencies have expressed deep sorrow over the loss of life and the continuous destruction. They have emphasized the necessity for a ceasefire and sustained humanitarian aid flow, which are critical initial actions to alleviate the dire conditions faced by the affected populations.

Escalating Poverty and Devastation in the Region

While the conflict is primarily centered in Gaza, its ramifications are profoundly felt in neighboring areas, including the West Bank, Lebanon, Jordan, and Egypt. The socio-economic fabric of these regions is under severe strain due to the spillover effects of the violence. Approximately 1.8 million individuals across the State of Palestine were already grappling with poverty before hostilities escalated on October 7. If the fighting persists for another month, the poverty rate could surge by 34 percent, potentially adding nearly 500,000 more people to the ranks of those in need.

Gaza’s Displacement Crisis: A Growing Humanitarian Catastrophe

As the conflict continues, an alarming number of housing units have been destroyed. Reports indicate that 35,000 housing units in Gaza have been completely demolished, with another 212,000 units suffering significant damage—a situation described as unprecedented. For perspective, it took four years of conflict in Syria to reach a similar level of destruction concerning housing availability.

With a population exceeding 2 million, nearly 1.5 million residents of Gaza are currently displaced. Rola Dashti, the Executive Secretary at ESCWA, based in Beirut, warned, “If this war persists, the majority of Gaza’s population might find themselves with nowhere to go, to call home, or to stay.” This dire situation is exacerbated by the fact that a shocking 96 percent of Gazans are now facing extreme deprivation of essential services, categorized under what is termed multidimensional poverty.

Severe Economic Impact: GDP Decline and Job Losses

The broader economic landscape in Palestine has suffered tremendously, with a reported 4 percent loss in GDP within just one month. This economic downturn has resulted in the disappearance of 390,000 jobs, as highlighted by Abdallah Al Dardari, the UNDP Assistant Secretary-General and Director of its Regional Bureau for Arab States. The ramifications of this crisis are profound, as 45 percent of UNDP projects in Gaza have been decimated. Critical infrastructure, including health centers, solar power stations, water treatment plants, and facilities supporting the private sector and women, has been irreparably damaged.

“Even more significant is the loss of human development,” Al Dardari emphasized. “After two months of conflict, Palestine, not just Gaza, would regress by 16 years in terms of human development, healthcare, education, infrastructure, and economic growth, effectively reverting to the conditions of 2005.”

Challenges Ahead: A Long Path to Recovery

The extensive displacement and widespread destruction of homes in Gaza since the onset of hostilities have created a bleak outlook for recovery. The report anticipates that the ongoing economic decline will further complicate an already devastating humanitarian crisis, making recovery prospects not only challenging but exceedingly slow.

Ms. Dashti urged the international community to unite and facilitate a path toward lasting peace. “History teaches us that without sustainable peace, all stakeholders in this conflict will not only suffer more loss of lives in the future but their prospects for sustainable development will also be jeopardized, and their hard-won gains in economic prosperity and social empowerment will be eroded,” she warned.