Israeli-Palestinian Conflict: Economic Toll and Human Rights Concerns



By Mare the Muse and Perplexity

The ongoing Israeli-Palestinian conflict continues to have devastating economic and humanitarian consequences, with recent developments exacerbating the situation for both Israelis and Palestinians.

Economic Impact

The conflict has inflicted severe economic damage on both sides:

  • Palestinian Territories: The World Bank estimates a 26% real GDP decline in 2024, with Gaza experiencing an 86% contraction in the first half of the year2.

  • Unemployment in Gaza soared to 79.1%, while the West Bank saw a jump to 32%38.

  • Israel's economy has also suffered, with GDP growth falling from 6.4% in 2022 to just 0.7% in 20245.

  • The Bank of Israel projects the war's cost to reach $55.6 billion by 20255.

Humanitarian Crisis

The conflict has led to a dire humanitarian situation:

  • Approximately 1.9 million Palestinians have been displaced7.

  • Over 36,654 Palestinian lives have been lost since the conflict's escalation3.

  • Massive destruction of infrastructure in Gaza has severely impacted access to basic services7.

  • Food prices in Gaza have skyrocketed, with inflation reaching 250% compared to the previous year2.

Human Rights Concerns

Human rights organizations have raised alarms about:

  • Widespread civilian casualties3

  • Destruction of homes, hospitals, and schools7

  • Restrictions on movement and access to essential services5

  • Concerns over the treatment of detainees on both sides6

Trump's Intervention in 2025

In early 2025, during his second term in office, President Donald Trump inserted himself dramatically into the Israeli-Palestinian conflict:

  • On February 4, 2025, Trump announced a plan for the United States to "take over" and "own" the Gaza Strip during a White House press conference with Israeli Prime Minister Benjamin Netanyahu4.

  • The plan proposed relocating Palestinian residents to neighboring countries and transforming Gaza into "the Riviera of the Middle East"4.

  • On February 26, 2025, Trump shared an AI-generated music video on Truth Social, depicting a futuristic "Trump Gaza" development4.

  • Trump's Middle East Envoy, Steve Witkoff, defended the plan, arguing it focused on long-term redevelopment over 15 to 25 years4.

  • The proposal has significantly disrupted ongoing peace efforts and ceasefire negotiations1.

Long-term Implications

The prolonged conflict is having far-reaching consequences:

  • The war has set back human development in Gaza and the West Bank by 11-16 years, according to the UNDP6.

  • Israel's economy could lose $400 billion in economic activity over the next decade5.

  • The conflict is straining Israel's social fabric, highlighting inequalities and potentially increasing emigration6.

As the conflict persists, the international community faces mounting pressure to address both the immediate humanitarian crisis and the long-standing political impasse that continues to fuel the cycle of violence and economic hardship in the region68.

Citations:

  1. https://www.cnn.com/2025/03/04/middleeast/us-arab-gaza-reconstruction-plan-rejects-hnk-intl/index.html
  2. https://www.un.org/unispal/document/world-bank-report-26sep24/
  3. https://www.aljazeera.com/economy/2024/6/7/gaza-unemployment-since-start-of-israels-war-soars-to-nearly-80-ilo
  4. https://www.ajc.org/news/what-is-trumps-proposal-for-gaza
  5. https://thedocs.worldbank.org/en/doc/db985000fa4b7237616dbca501d674dc-0280012024/original/PalestinianEconomicNote-Feb2024-Final.pdf
  6. https://unctad.org/news/unemployment-west-bank-nearly-tripled-six-months
  7. https://unctad.org/publication/preliminary-assessment-economic-impact-destruction-gaza-and-prospects-economic-recovery
  8. https://www.un.org/unispal/document/a-year-of-war-ilo-press-release-17oct24/
  9. https://www.aljazeera.com/news/liveblog/2025/3/5/live-israel-slams-egypts-gaza-plan-hamas-welcomes-call-for-elections
  10. https://www.ilo.org/resource/news/year-war-unemployment-surges-nearly-80-cent-and-gdp-contracts-almost-85

 

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