The United Nations Development Programme (UNDP) has recently released a report highlighting the severe economic impact of Israel's ongoing war with Hamas on the Palestinian economy in Gaza and the West Bank. The analysis paints a grim picture of the current economic conditions, with key indicators showing a significant decline.

According to the report, the number of Palestinians living in poverty has skyrocketed by 300,000 since the start of the conflict. The fighting has also led to the displacement of nearly 1.5 million people in Gaza. The combination of Israel's blockade on fuel and severe restrictions on essential supplies like food, water, and medical aid has resulted in a humanitarian crisis.

The economic ramifications are alarming as well. The UNDP analysis reveals that employment rates in Gaza have plummeted by 61 percent, while the West Bank has experienced a 24 percent decrease. Moreover, Palestinian GDP is estimated to have fallen by 4.2 percent after just one month of war, amounting to a loss of approximately $857 million. If the conflict continues into a second month, the GDP loss could rise to $1.7 billion, or 8.4 percent.

Poverty levels in Gaza have been a persistent issue, with 61 percent of the population already below the poverty line in 2020, according to the World Bank. The current war has only intensified the economic hardships faced by the people. After a month of fighting, the number of people living in poverty in Gaza and the West Bank has increased by almost 20 percent. The report warns that if the warfare persists for another month, the population living in poverty could rise to 34 percent, equating to 500,000 people.

The destruction caused by the extensive bombardment in the densely populated area is also staggering. Nearly half of the housing stock has been damaged or destroyed, and 40 percent of educational facilities have sustained damage, according to the United Nations Office for the Coordination of Humanitarian Affairs.

The UNDP report suggests that the conflict will have a devastating impact on "human development" in Gaza and the West Bank, resulting in an estimated setback of 11 to 16 years. This assessment is based on indicators such as education, health, and economic growth that contribute to the region's score on the Human Development Index. If the conflict persists for another month, the setback could extend to 19 years.

Israeli Prime Minister Benjamin Netanyahu has reiterated the government's determination to completely eliminate Hamas and has not provided a clear timeline for the military operation's duration. However, questions have arisen regarding the post-war management of Gaza, with Netanyahu suggesting that Israel would seek security control in the region rather than governing power.

The UNDP has not yet estimated the costs of reconstruction in Gaza, as the length of the campaign remains uncertain. However, the organization anticipates being involved in the rebuilding process, although they acknowledge that a continued Israeli blockade would complicate these efforts.

The analysis by the UNDP underscores the urgent need for a ceasefire and highlights the long-lasting consequences of the conflict on the Palestinian economy. As the situation continues to unfold, the international community is urged to support efforts for peace and work towards a sustainable future for the Palestinians in Gaza and the West Bank.