The war between Israel and Hamas is “devastating” for the Palestinian economy, warns the IMF

The war between Israel and Hamas “has devastated” the Palestinian economy in the occupied West Bank and in the Gaza Stripdeclared on Sunday the director of the International Monetary Fund (IMF), and noted that only “lasting peace” would improve prospects.

“The disastrous prospects for the Palestinian economy worsen as the conflict continues,” he said. Kristalina Georgieva at a summit in Dubai. “Only a lasting peace and a political solution will fundamentally change the situation,” estimated.

“On an economic level, the impact of the conflict has been devastating,” Georgieva elaborated.

Despite international efforts to reach a ceasefire, the war between Israel and Hamasunleashed on October 7 with the unprecedented attack by the Palestinian Islamist group on Israeli soil, continues to wreak havoc.

In the Gaza Stripdevastated by Israeli military operations launched in response to the attack, economic activity plunged 80% from October to December 2023 compared to the same period the previous year, according to the head of the financial organization.

In the West Bank, a territory occupied by Israel since 1967, the drop was 22%, he said at the opening of the summit, which brings together prominent business and political figures in the United Arab Emirates every year.

In addition to the Palestinian Territories, the war has also had an impact on the tourism sector in neighboring countries, such as Egypt and Lebanon.

And the attacks by the Houthi rebels off the coast of Yemen against commercial ships, actions that they claim in “solidarity” with the Palestinians of Gaza, have led to “an increase in freight costs and a reduction in the volume of transit in the Red Sea of ​​almost 50% this year,” added Georgieva, in her speech published on the website of the IMF.