Palestinian private sector decimated by $8bn loss due to Israel’s economic warfare

Palestinian private sector losses have reached $8 billion during the past 14 months since Israel launched its genocide against the Palestinians in Gaza and the rise in settler violence in the illegally-occupied West Bank, according to new data from the Palestinian Central Bureau of Statistics. The figures, released on Thursday, reveal both a massive decline in production and extensive damage to assets and property across the occupied Palestinian territories.

The devastation of the Palestinian economy is most visible in Gaza’s construction sector, which has ground completely to a halt. Not a single construction worker in Gaza remains employed, while building materials and reconstruction projects are unavailable. In the West Bank, where settler violence has intensified, more than half of all construction work has stopped. The industrial sector, once the backbone of Palestinian economic independence, has been crippled, with factories in Gaza either destroyed or unable to operate.

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Private sector production fell by 55 per cent across the occupied Palestinian territories in 2024, with Gaza experiencing an 84 per cent decline and the West Bank seeing a 51 per cent fall. The construction sector was most severely impacted, with production falling by 60 per cent overall: a complete cessation in Gaza and a 56 per cent decline in the West Bank. The industrial sector suffered a 56 per cent decrease (52 per cent in the West Bank, 86 per cent in Gaza), while internal trade and services dropped by 54 per cent (51 per cent in the West Bank, 78 per cent in Gaza).

Employment figures reflect the widespread economic devastation, with a 24 per cent overall decline in the number of Palestinians in work: 82 per cent in Gaza and 20 per cent in the West Bank. Construction sector employment completely halted in Gaza while declining 21 per cent in the West Bank. Industrial employment fell by 83 per cent in Gaza and 22 per cent in the West Bank, while internal trade and services saw reductions of 75 per cent in Gaza and 15 per cent in the West Bank.

The systematic destruction of Palestine’s economic foundation reflects a broader pattern of economic warfare by the occupation state. Even before Israel’s current genocide, Palestinian industry struggled under restrictions imposed by the illegal occupation. Nevertheless, it managed to generate over a third of all production, with domestic trade producing another third. Service industries, including finance and insurance, made up most of the remainder, while construction and transportation — sectors particularly vulnerable to control by the occupation regime — were already minimised. This pre-existing fragility, created by years of illegal occupation, has now been exploited by the current military campaign, potentially setting Palestinian economic development back by decades.

READ: Poverty rate in Palestine Territories doubles amid Israel invasion, pulling Gaza development back to 1950s levels