The Impact of The Genocidal War in Gaza On Palestinian and Israeli Economies in 2024

Abstract

Although making the Palestinian economy sustainable under a single-state framework has long been a national goal, Israel’s ongoing occupation has prevented this process from materializing. With the continuation of this occupation, the war in Gaza that has escalated since 2023, and increasing pressures in the West Bank, the Palestinian economy has been plunged into a severe crisis. The destruction of infrastructure has become chronic, leading to greater dependency on external aid.

While the Gaza Strip had already been under blockade and economic restrictions for years, this war has devastated the region, dramatically increasing unemployment and poverty rates. In the West Bank, Israeli raids and economic sanctions have led to the collapse of trade and a financial crisis for the Palestinian Authority.

Meanwhile, the war has also had significant repercussions on the Israeli economy. The prolonged conflict has threatened economic stability, creating security crises, budget deficits, and investment losses. This process has undermined Israel’s “short war” doctrine.

This study analyzes the impact of Israel’s war policies on the economies of the West Bank, Gaza, and Israel, focusing on developments since October 7, with particular emphasis on the year 2024.