Palestinian economy hit hard in 1 month of Israeli attacks on Gaza

After a month of devastating Israeli attacks on the Gaza Strip, the Palestinian economy has severely weakened.

While Tel Aviv continues to pursue its air and ground offensive on Gaza, the occupied West Bank is also facing tensions with Israeli forces that continue to raid Palestinian territories, killing nearly 160 people so far.

No official data has yet been released on the scale of the economic losses as a result of the Israeli onslaught on Gaza, where the unemployment stood at 46% even before the attacks commenced on Oct. 7, while 80% of its population was dependent on humanitarian aid.

PALESTINIAN STOCK EXCHANGE

The Palestinian stock exchange was the first to be affected by the Israeli offensive on Gaza, registering losses in all of its sessions since Oct. 7.

Its Al-Quds index has declined to its lowest level since September 2021.

According to Anadolu, in Oct. 5-Nov. 5 the Al-Quds index plunged by 8.5%.

On Oct. 29, the board of directors of the Palestinian Capital Market Authority made a decision to allow joint-stock companies to buy back their shares without the condition of a contract.

The move sought to enhance the stability of stock prices in the Palestine Exchange.

PALESTINIAN WORKERS IN ISRAEL

According to Palestinian figures, some 140,000 Palestinians from the occupied West Bank work in Israel, in addition to about 18,500 from Gaza.

Today, most of those workers are unemployed as most of Israeli economic activities have been suspended over the ongoing fighting.

Those workers used to earn 1.5 billion Shekels ($397 million) every month, whereas most of this money was pumped into the West Bank markets.

During the month-long war, the Palestinian markets lost the purchasing power of the Palestinian workers as most of them lost their jobs.

BANKING SECTOR

On Oct. 25, the Palestinian Monetary Authority issued a series of instructions to banks in Palestinian local markets in an effort to ease the financial consequences of the conflict.

The measures include postponing repayments of loans by Palestinian borrowers in Gaza until the end of January.

Sources told Anadolu that in total, Palestinian loans in Gaza were worth $923 million as of the end of September.

TAX REVENUES

Palestinian tax revenues collected by Israel on behalf of the Palestinian Authority were also affected by the attacks on Gaza as Israel threatens not to transfer them to the Ramallah-based authority.

On Oct. 30, Israel's finance minister froze the transfer of tax revenues, amounting to $188 million per month.

This was later reversed after an order by Israeli Defense Minister Yoav Gallant, who order the transfer take place but only after deducting the amount of funds directed monthly to the Gaza Strip.

The Palestinian Authority, for its part, refused to receive the "incomplete" tax funds from the Israeli side.

This will increase the already cash-strapped authority's financial burdens, as well as its employees, whose salaries will be affected by the decision.

Israel has launched air and ground attacks on the Gaza Strip following a cross-border attack by Hamas on Oct. 7.

At least 10,022 Palestinians, including 4,104 children and 2,641 women, have been killed in the Israeli bombardments in the Gaza Strip. Israeli death toll is nearly 1,600, according to official figures.