Palestinian citizens are trapped in an economy of jobless growth with no prospects, especially in Gaza, which is undergoing "de-development," the United Nations trade and development agency said in an annual report published on Wednesday.
The United Nations Conference on Trade and Development report said unemployment in the Palestinian territories was the highest in the world in 2017, at 27.4%, while agricultural production fell by 11%. Half of Palestinians under 30 were unemployed. The economy grew 3.1% but was flat on a per capita basis.
Speaking to journalists in Geneva, Mahmoud Elkhafif, coordinator of the report, said the major reason for this situation from an economic development point of view was a set of Israeli restrictions such as permit systems for Palestinians to work in Israel.
UNCTAD Deputy Secretary General Isabelle Durant described the economic situation in Gaza as "absolutely unsustainable."
A customs union between Israel and the Palestinian territories has isolated the Palestinian economy from the rest of the world and left it dependent on Israel, the report said.
In Gaza, where real incomes have fallen 30% since 1999 and production capacity has been hit by successive military operations, households got an average of two hours of electricity daily, and only about 10% had drinking water.
"Half of the population in Gaza is food insecure; this is despite the fact that 80% of the population gets a social assistance. That was when we were writing this report, I don't know about now, after UNRWA cuts. The real income in Gaza is 30% below its level in 1999," Elkhafif said.
"The major reason for this dark situation from the economic development point of view is a group or a set of Israeli restrictions that have been there, it is relaxed a bit from time to time, but again, it is the norm. These measures include: permit system for Palestinian to work in Israel, you have roadblocks in the West Bank, you have earth mounds, trenches, checkpoints, gates and separation barriers," he noted.
"How could we consider that the situation in Gaza is sustainable?" Durant asked.
"It is absolutely unsustainable, with this kind of figures, this kind of situation regarding providing water and electricity, schools, unemployment, etc. And especially because there is no perspective. If you could develop some hope, of course it will help, or it could help regarding the perspective for the young generation, but there is no perspective so of course, the situation is, now, when I speak, absolutely desperate for many, many people."
