West Bank Economy in Tatters as Gaza War Rages

Hafeth Ghazawneh says his income has plummeted from around 7,000 shekels ($1,850) per month to just 2,000 ($530). - AFP
Hafeth Ghazawneh says his income has plummeted from around 7,000 shekels ($1,850) per month to just 2,000 ($530). - AFP
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West Bank Economy in Tatters as Gaza War Rages

Hafeth Ghazawneh says his income has plummeted from around 7,000 shekels ($1,850) per month to just 2,000 ($530). - AFP
Hafeth Ghazawneh says his income has plummeted from around 7,000 shekels ($1,850) per month to just 2,000 ($530). - AFP

In the occupied West Bank, Hafeth Ghazawneh waits in quiet frustration for customers to visit his falafel stall, which has been deserted since the October 7 Hamas attacks in Israel.

His breakfast and lunch offerings were popular with craftsmen from workshops near Al-Bireh, the twin city of Ramallah, before the Israel-Hamas war broke out.

"Now they're bringing their meals from home because the situation is so difficult," Ghazawneh tells AFP, fearing he will have to shut up shop if the war in the Gaza Strip continues.

Ghazawneh says his income has plummeted from around 7,000 shekels ($1,850) per month to just 2,000 ($530).

His worsening situation reflects the current status of the West Bank economy, which is in tatters as the war in Gaza rages.

The conflict erupted after Hamas militants attacked southern Israel on October 7. Israel's blistering retaliation has killed at least 24,448 people, around 70 percent of them women, children and adolescents, according to the Hamas government's health ministry in Gaza.

The World Bank has estimated the West Bank's GDP could fall by six percent this year, while the International Labor Organization said 32 percent of jobs have already been lost.

The unemployment rate has skyrocketed to 30 percent, up from 14 percent before the war, according to Taher al-Labadi, a researcher at the French Institute for the Near East (Ifpo).

Israel has also withdrawn 130,000 work permits from Palestinians in the West Bank, leaving many with no source of income.

The three million Palestinians living in the West Bank, which Israel has occupied since 1967, cannot travel to Israel without a permit.

Bishara Jubran, manager of a household products and cosmetics factory in Ramallah, considers himself lucky because he has been able to keep all 70 of his employees on the books.

But his business has stopped producing soaps made from Dead Sea ingredients which he used to sell to hotels.

As the war rages and visitors stay away, he estimates his losses at $200,000 last year.

He keeps his factory afloat by selling washing powder and other household products on the Palestinian market.

But none of his goods are allowed into Gaza, a key market that used to make up 20 percent of his sales.

In the West Bank, transport costs have increased because of a growing number of checkpoints and the sealing off of certain towns by the Israeli army, Bishara says.

"Many times the truck leaves and it takes them like four or five hours to reach... the north in Nablus to find out that he cannot enter the city. So he just comes back," he says.

Now he makes a delivery every two or three days, down from two a day before the war.

Such factors have led to a contraction of the economy, which is now operating at 50 percent of its capacity, according to Abdo Idris, president of the Palestinian Chamber of Commerce.

The Palestinian economy was already "asphyxiated" and highly dependent on Israel before the war, researcher Labadi says.

Under the Oslo Accords of the 1990s, it was agreed that a political status quo would be maintained and Palestinians were promised economic development.

But this status quo was undermined by Israel's "colonization of the West Bank", Labadi says, lamenting that Palestinian economic development "did not take place".

As a result, in times of crisis, the increasingly fragile Palestinian economy finds itself "deprived of all its resources and with a very limited capacity for resilience", he says.

Israel controls the borders of the West Bank and collects taxes on Palestinian products, which it must then pass on to the Palestinian Authority.

But since October 7, those taxes have not been paid.

As of December, Israel had not paid two billion shekels in taxes imposed on Palestinian products, according to the Palestinian finance ministry.

The Palestinian Authority has struggled to pay public servants since the taxes were withheld.

Civil servants told AFP their salaries for December have still not been paid.

In October, they received 50 percent of their wages, and 65 percent in November.

"The fear of the unknown is killing us," Jubran says. "We don't know if we'll be able to go to work tomorrow."



Moving Heaven, Earth to Make Bread in Gaza

Displaced Palestinian girls bake bread at the Bureij refugee camp in the central Gaza Strip - AFP
Displaced Palestinian girls bake bread at the Bureij refugee camp in the central Gaza Strip - AFP
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Moving Heaven, Earth to Make Bread in Gaza

Displaced Palestinian girls bake bread at the Bureij refugee camp in the central Gaza Strip - AFP
Displaced Palestinian girls bake bread at the Bureij refugee camp in the central Gaza Strip - AFP

In Gaza, where hunger gnaws and hope runs thin, flour and bread are so scarce that they are carefully divided by families clinging to survival.

"Because the crossing points are closed, there's no more gas and no flour, and no firewood coming in," said Umm Mohammed Issa, a volunteer helping to make bread with the few resources still available.

Israel resumed military operations in the Palestinian territory in mid-March, shattering weeks of relative calm brought by a fragile ceasefire.

The United Nations has warned of a growing humanitarian catastrophe unfolding in the besieged territory, where Israel's blockade on aid since March 2 has cut off food, fuel and other essentials to Gaza's 2.4 million people, AFP reported.
Israel has repeatedly said it will not allow aid in, accusing Hamas of diverting the supplies, a claim the Palestinian militant group denies.

Once again, residents have had to resort to increasingly desperate measures to feed themselves.

To cook a thin flatbread called "saj", named after the convex hotplate on which it is made, Issa said the volunteers have resorted to burning pieces of cardboard.

"There's going to be famine," the Palestinian woman said, a warning international aid groups have previously issued over the course of 18 month of war.

"We'll be in the situation where we can no longer feed our children."

- 'Bread is precious' -

Until the end of March, Gazans gathered each morning outside the few bakeries still operating, in the hope of getting some bread.

But one by one, the ovens cooled as ingredients -- flour, water, salt and yeast -- ran out.

Larger industrial bakeries central to operations run by the UN's World Food Programme also closed for lack of flour and fuel to power their generators.

On Wednesday, World Central Kitchen (WCK) sounded the alarm about a humanitarian crisis that is "grows more dire each day."

The organization's bakery is the only one still operating in Gaza, producing 87,000 loaves of bread per day.

"Bread is precious, often substituting for meals where cooking has stopped," it said.

"I built a clay oven to bake bread to sell," said Baqer Deeb, a 35-year-old father from Beit Lahia in northern Gaza.

He has been displaced by the fighting, like almost the entire population of the territory, and is now in Gaza City.

"But now there's a severe shortage of flour," he said, "and that is making the bread crisis even worse."

There is no longer much food to be found for sale at makeshift roadside stalls, and prices are climbing, making many products unaffordable for most people.

- 'Mould and worms' -

Fidaa Abu Ummayra thought she had found a real bargain when she bought a large sack of flour for the equivalent of 90 euros at Al-Shati refugee camp in the north of the territory.

"If only I hadn't bought it," the 55-year-old said. "It was full of mould and worms. The bread was disgusting."

Before the war, a typical 25-kilo sack like the one she bought would have gone for less than 10 euros.

"We are literally dying of hunger," said Tasnim Abu Matar in Gaza City.

"We count and calculate everything our children eat, and divide up the bread to make it last for days," the 50-year-old added.

"We can't take it any more."

People rummage through debris searching for something to eat as others walk for kilometres (miles) to aid distribution points hoping to find food for their families.

Germany, France, and Britain on Wednesday called on Israel to stop blocking humanitarian aid into Gaza, warning of "an acute risk of starvation, epidemic disease and death".

According to the UN humanitarian agency OCHA, displaced people at more than 250 shelters in Gaza had no or little access to enough food last month.

True to their reputation for resilience after multiple wars, Palestinians in the Gaza Strip have devised countless ways to cope with growing hardship.

But in interviews with AFP, many said these improvised solutions often make them feel as though they've been thrust back centuries.