A recent United Nations Development Program study warns that Israel’s protracted war in besieged Gaza could have severe economic repercussions on neighboring Arab nations, namely Lebanon, Egypt, and Jordan. The study estimates that the economic toll might surpass $10 billion this year, potentially pushing over 230,000 people into poverty.
Israel’s relentless attacks coincide with fiscal challenges, slow growth, and high unemployment rates in the three Arab countries, hindering much-needed investment and impacting consumption and trade. Lebanon, in particular, is grappling with a deep economic crisis.
Commissioned by the UN, the study suggests that the war’s cost in terms of GDP loss for the three states could reach $10.3 billion or 2.3 percent, with the potential to double if the conflict persists for another six months. Abdallah Al Dardari, UN Assistant Secretary-General and Director of the Regional Bureau for Arab States, emphasized the massive impact of the crisis on an already fragile regional situation.
Dardari highlighted the unprecedented scale of destruction in Gaza within a short timeframe, comparing it to World War Two. The war has resulted in the deaths of over 18,000 Palestinians, primarily women and children, with Israel’s death toll at 1,200.
The study underscores the unique nature of the devastation, noting that Gaza lost 45-50 percent of all housing in just one month of fighting. Dardari emphasized that the mass displacement of almost 80 percent of Gaza’s population within such a short period surpassed the decade-old Syrian conflict in terms of destruction and refugee crisis.
As efforts to reach a resolution continue, the study’s findings urge immediate attention to post-war reconstruction scenarios for Gaza. Dardari revealed ongoing outreach to development funds and multilateral financial institutions, emphasizing the proactive approach to reconstruction amid the ongoing conflict.
