NEW YORK (Palestine Foundation Information Center) The World Bank said the Israeli genocidal war on the Gaza Strip is pushing the Palestinian territories into an unprecedented financial crisis, estimating that the Palestinian economy lost by a quarter during the current year following a major contraction in 2023, which is “an unprecedented slowdown in recent memory.”
The World Bank explained, in a new report issued on Monday, that the real gross domestic product in the West Bank contracted by 23%, and in the Gaza Strip by 86% in the first half of 2024, expecting the economy in the Palestinian territories to contract by 26% for the entire year 2024.
The bank stressed that the impact of the Israeli war exceeded all previous economic crises in the Palestinian territories over the past two decades, including the second intifada in 2000, the internal division in 2006, the Gaza war in 2014, and the Covid-19 pandemic in 2020.
It pointed out that the banking sector faces, despite good capital, increasing risks of credit losses, diminishing profits, and practical operational challenges, especially in Gaza, where cash shortages have intensified in the Strip, affecting aid provision, financial transfers, food security, and access to basic services.
The World Bank indicated that the Israeli occupation army destroyed about 93% of bank branches operating in the Strip, 88% of micro finance institutions and most money changers, and 88% of insurance companies during the ongoing war of extermination.
It also reported that only 3 out of 94 ATM machines are operating in the Gaza Strip, according to identical data from the World Bank and the Palestinian Monetary Authority.
The report’s finds out that Palestinians in the Gaza Strip struggle to pay for basic goods and services, including food and medicine.
The destruction of Gaza’s financial infrastructure has severely impacted residents’ ability to afford basic goods and services, including food and medicine.
According to the World Bank, this financial paralysis is hindering private sector efforts to resume production, generate employment, and pay workers’ salaries.
The report also emphasized that the ongoing aggression has disrupted access to financial services in the West Bank, exacerbating the challenges faced by Palestinians.
The World Bank underscored that access to effective financial services is essential for personal economic growth and the country’s economic development, “especially in times of crisis when digital payments can be a lifeline.”
