Palestinians displaced by the ongoing conflict in Gaza face
devastating financial burdens amid destroyed homes and escalating war costs.
The war has caused nearly $18.5 billion in damages in Gaza alone, severely
impacting regional economies and humanitarian conditions, with experts urging
urgent ceasefire and reconstruction efforts.
The Scale of Financial Damage in Gaza
As reported by Perrihan Al-Riffai, economic expert at the
Qatar Central Bank, in a comprehensive analysis for ReliefWeb, the conflict in
Gaza has wrought catastrophic economic damage estimated at nearly $18.5
billion. This figure results from preliminary assessments made jointly by the
World Bank, the United Nations, and the European Union. The conflict began with
Hamas attacks a year ago and has since escalated, spreading repercussions
beyond Gaza to the broader Middle East region.
The war’s onset caused severe shocks to supply and demand,
reducing Israeli economic activity by 21 percent in the last quarter,
year-on-year. Lebanon, a country already mired in economic crisis, witnessed
the collapse of one of its few stable income sources—tourism. Egypt’s revenues
from the Suez Canal halved as international shipping routes were diverted to
avoid attacks in the Red Sea, further destabilising fragile regional economies.
The analysis highlights a convergence of crises including
high inflation, debt, population displacement, and natural disasters that
compound the damage wrought by the war. These multidimensional crises threaten
poverty alleviation efforts and escalate inequality throughout the region.
Financial Burdens on Displaced Palestinians
As Al Jazeera’s Moath Al-Kahlout reports, Palestinians
fleeing the conflict face staggering financial costs due to forced
displacement. Many have had to comply with orders to leave their homes rapidly
amid growing destruction, leaving families with limited resources to survive.
The costs include loss of property, rising prices for basic goods, transport
expenses, and expenses related to finding temporary shelter.
The forced displacement disrupts livelihoods further
deepening poverty and vulnerability in Gaza. Families are left to cope not only
with trauma but also the crippling cost of survival amidst continuing violence
and blockade conditions. The situation threatens to undermine humanitarian
efforts and the fragile social fabric within the Palestinian territories.
Widening Regional Economic Impact
The war in Gaza has expanded its economic and social costs
across neighbouring countries and beyond. As detailed by Perrihan Al-Riffai,
the conflict has driven up food insecurity in already fragile,
conflict-affected states like Yemen and Lebanon, both of which rely heavily on
food imports now squeezed by sanctions and restricted aid flows.
The escalation and persistence of fighting risk extending
vulnerabilities into oil-rich economies, threatening political stability and
deterring foreign investment. The report also warns about inflationary
pressures resulting from commodity market disruptions, notably with OPEC+
countries cutting oil production, which could exacerbate global financial
tightening.
Humanitarian and Political Consequences
The ongoing conflict has a grim human toll alongside the
financial destruction. According to Al Jazeera’s coverage of the
Israel and Palestine conflict, recent Israeli operations have resulted in the
deaths of over 100 people in Gaza, including children and journalists. The
violence exacerbates the suffering of civilians and impedes access to aid.
Peacebuilding and a permanent ceasefire are urged by
analysts as essential for the socioeconomic stability of the region. Without a
durable peace and a coordinated reconstruction plan, the compounded impact of
war, economic shocks, and displacement will continue to unravel hard-won developmental
gains and deepen regional instability.
Calls for International Mediation and Reconstruction
Economist Perrihan Al-Riffai stresses that international
mediation and peacebuilding are existential imperatives, not only for the
immediate region but for global stability. The economic analysis underscores
that lasting peace and a robust plan for reconstruction are the only paths
forward to restore economic normalcy and prevent further humanitarian disaster.
Efforts to rebuild Gaza require significant financial
commitments and international cooperation to address the extensive destruction
impacting infrastructure, housing, and critical services. The urgency grows as
the conflict threatens to spread further, with implications reaching world
commodity markets and political alliances.