Gaza’s poverty rate is higher now than during the peak of the pandemic

The Latest:

  • 343,710 Palestinians tested positive for COVID-19; 337,824 recoveries; 3,845 deaths
  • Of those who tested positive, 199,913 live in the West Bank, 114,956 live in Gaza, and 28,841 live in East Jerusalem
  • 844,989 Israelis tested positive for COVID-19; 834,687 recoveries; 6,432 deaths

The delta variant has locked down an entire West Bank city. While we are continuing to see the overall number of new coronavirus cases decline in the West Bank, the highly contagious delta variant is spreading throughout the Palestinian territory, causing health officials to pull the alarm and enact a four-day closure over the entire city of Jenin.

The hopes to quarantine the COVID-19 mutation until higher vaccination rates are reached, a plan used in many countries, doesn’t seem to be working. Vaccination rates are actually decreasing, in part because of public distrust and misinformation about side effects. 

In the West Bank city of Hebron, a former epicenter of the outbreak, vaccinations declined by 24%, the UN reported. 

A deserted street in the occupied West Bank city of Jenin on the last day of the Muslim fasting month of Ramadan amid the COVID-19 pandemic on May 23, 2020. (Photo: Oday Daibes/APA Images

According to the Palestinian Ministry of Health, as of Thursday 536,130 in the West Bank and Gaza have received at least one shot, and 385,465 are fully vaccinated. 

Gaza currently accounts for more than 90% of current COVID-19 cases.

11 days in May (plus the pandemic) left Gaza with the highest poverty rate in over 20 years

During the height of the pandemic in 2020, the Gaza Strip, already in an economic “free fall” from 14 years of blockade, experienced its sharpest decline in more than two decades. The economy contracted by 11.5%. Now, one year later, when experts had projected a modest 2.5% growth, it is due to shrink again because of damage done during the 11-day escalation with Israel. Instead of recovering, the economy will decline by another .3% and the needle could continue in the negative for the next two years. 

The findings were published this week in a rapid needs assessment from the European Union, the World Bank, and United Nations. The agencies found the “unemployment rate would be the highest since the early 1990s when the Oslo Accords were signed.”

Gaza’s poverty rate is now estimated at 59.3%, 2.3% above the levels during the peak of the pandemic’s economic stagnation, and 16.3% higher than previous data from 2017.

“Even before the latest escalation, the unemployment rate in Gaza was 48 percent in the first quarter of 2021; poverty rates were above 50 percent,” the report said.  “Approximately 80 percent of Palestinian households were receiving some form of social assistance.” At least 62% are food insecure. 

Gaza’s economy is reliant upon aid. Most of the growth is consumption-driven, funded by foreign aid or cash transfers for everything from large-scale infrastructure projects down to consumer purchases like toothpaste or water. Now those types of assistance programs will be redirected to funding reconstruction costs. 

The big picture: The report found over the course of 11 days, Gaza experienced $380 million in physical damage” and “$190 million in economic losses.” The bill for recovery for the next two years will reach $485 million. 

The steepest price tags on damage are all from Israeli airstrikes and artillery fire. By far the largest single sector is housing, which came to $160 million. Keep in mind, around 8,220 are still homeless seven weeks after a detente was reached. 

Another major sector of damage was to public infrastructure, including transport, water desalination plants, and energy. Electrical lines leading to Gaza’s only power plant were targeted by the Israeli army, bringing blackouts to almost 20 hours a day. Today, most homes have around 12 hours of power each day. 

Water is an ongoing issue. Heavy restrictions on imports for industrial material have stalled initial efforts to get basic services up and running again. 

“A water desalination plant in the northern Gaza Strip ceased operation on 4 July due to the lack of antiscalant materials [an additive for reverse osmosis] required for the desalination process affecting access to drinking water for 200,000 people,” the groups said. “The plant resumed functioning on 7 July after the required materials were secured.”

Here is a rundown of the damage:

  • Housing $160 million
  • Healthcare $15 million
  • Education $5 million
  • Waster and sanitation $15 million
  • Transport $20 million
  • Energy $15 million
  • Municipal services $30 million
  • Agriculture $45 million
  • Environment $20 million

That’s it for this week, have a great weekend. 

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