Washington:
A recent report from the International Monetary Fund (IMF) highlights the devastating impact of the year-long conflict between Israel and Hamas on the economy of the occupied West Bank and Gaza. The report states that Gaza has experienced a nearly 90 percent drop in GDP, with an 86 percent decline in the first half of 2024. The civilian population in Gaza is facing dire socioeconomic conditions, a humanitarian crisis, and insufficient aid delivery.
In the West Bank, the situation is also dire, with a 25 percent decline in GDP in the first half of 2024. The ongoing conflict has taken a toll on both Israel’s and Lebanon’s economies as well.
Israel’s economy has been battered by the war, leading to downgrades in its debt ratings by three main agencies. While there was a slight rebound in GDP in the first quarter of 2024, growth has been sluggish in the second quarter.
The conflict in Lebanon has exacerbated the country’s fragile macroeconomic and social situation. Hezbollah’s involvement in the conflict has further escalated tensions in the region.
US President Joe Biden’s comments about possible Israeli strikes on Iranian oil facilities have added to the uncertainty in the region, with oil prices spiking as a result.
(This article is based on a syndicated feed and has not been edited by NDTV staff.)
