Economic Conditions in Palestine Before and After the 2023–2025 Conflict
Year: 2025
Type: article
Abstract: This research paper investigates the economic conditions of Palestine before and after the 2023–2025 conflict, providing a comprehensive analysis of how sustained political instability and military operations have shaped the Palestinian economy. The study situates the conflict within its broader historical and political context, detailing the long-term impacts of occupation, blockades, and governance challenges on economic development in both the West Bank and Gaza Strip. The paper first examines pre-war economic indicators, including GDP, unemployment, poverty, trade balances, investment, and sectoral activity across agriculture, manufacturing, and services. It highlights the structural vulnerabilities of the Palestinian economy, such as high unemployment—particularly in Gaza—heavy dependence on Israel for trade and revenue, and the limited inflow of foreign direct investment. The core analysis focuses on the economic consequences of the 2023–2025 conflict. Key findings include a dramatic contraction of GDP, widespread unemployment, destruction of critical infrastructure, disruption of public services, and a surge in poverty and food insecurity. The paper provides sectoral insights, showing the near-total collapse of agriculture and manufacturing in Gaza, the severe disruption of services and informal economy, and the socio-economic ramifications, including displacement, migration, and loss of human capital. Furthermore, the study explores the role of international aid and foreign investment in post-conflict recovery. It assesses humanitarian assistance, reconstruction needs, and the fiscal pressures faced by the Palestinian Authority. The paper outlines potential recovery strategies, emphasizing coordinated international support, governance reforms, economic diversification, and rebuilding of human capital. This research offers a holistic view of the Palestinian economy during a period of unprecedented crisis, combining quantitative data, qualitative assessments, and policy analysis. It is relevant for scholars, policymakers, and development practitioners seeking to understand the interplay between conflict and economic resilience, and the strategies required for sustainable post-conflict reconstruction.
Author: THEKKOT SIVARAMAN, SIVARANJITH
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7083018076
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