Palestine Economic Update - March 2024

author: Palestine Economic Policy Research Institute - MAS
year: 2024

While the war on the Gaza Strip continues for the sixth month, the March issue of the Palestine Economic Update discusses the repercussions of the war on Gaza on the socio-economic scene in Palestine.

Update Highlights:

  • Private-sector production losses during the war amounted to $2.3 billion, with a 35% loss incapacity, showing the severe impact on the economy. Gaza's GDP plummeted by over 80% in Q4 2023 alone.
  • The majority of Gaza's population faces acute food insecurity, with malnutrition rates reaching unprecedented levels. Israeli actions, including attacks on civilians awaiting aid and blocking aid from entering Gaza, exacerbate the humanitarian crisis.
  • International donors have pledged additional humanitarian assistance to address the crisis, but its severity undermines efforts. The situation will continue to deteriorate without an immediate ceasefire.
  • After months of negotiations, the Norwegian Ministry of Foreign Affairs announced the transfer of NIS 407m in clearance revenue to the PNA, facilitated by a temporary escrow deposit arrangement.
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