The Palestinian economy is in free fall and will require billions to rebuild, the UN says

abcnews.go.com:

The Palestinian economy is “in free fall,” with production in Gaza plunging to one-sixth of its level before Israeli forces began a blistering military response to the Oct. 7 attacks in the territory, the United Nations says

GENEVA — The Palestinian economy is “in free fall,” the United Nations reported Thursday, with production in Gaza plunging to one-sixth of its level before Israeli forces began a blistering military response to the Oct. 7 attacks in the territory.

The report from UN Trade and Development, or UNCTAD, also warned of “rapid and alarming economic decline" in the West Bank, citing expanded Israeli settlements, land confiscations, demolition of Palestinian buildings and violence by settlers.

The report made no mention of corruption in Palestinian institutions.

“The Palestinian economy is in free fall,” Pedro Manuel Moreno, the agency’s deputy secretary-general, told reporters in Geneva. “The report calls for the international community to halt this economic free fall, address the humanitarian crisis, and lay the groundwork for lasting peace and development.”

That would include a “comprehensive recovery plan” for Palestinian areas, more international aid, the lifting of Israel’s blockade on Gaza, and the release of revenues and withheld funds for Palestinians retained by Israel, he said.

Gaza’s economy was weak even before the war, when unemployment was close to 50%, but the war has brought it to a near-standstill, with the U.N. estimating that roughly 90% of the territory’s population has been displaced, many living in squalid tent camps and dependent on international aid.

The war has also hurt the West Bank. After the Oct. 7 attacks, Israel immediately revoked work permits that allowed some 150,000