Israel-Hamas war has devastated economies of both Gaza and the West Bank, IMF head says

The war between Israel and Hamas has devastated the economies of both the war-torn Gaza Strip and the West Bank, the International Monetary Fund’s chief says, adding that only “durable peace” will improve the outlook.

“The Palestinian economy’s dire outlook is worsening as the conflict persists,” managing director Kristalina Georgieva tells the World Governments Summit in Dubai.

“Only a durable peace and political solution will fundamentally change it.”

“Economically, the impact of the conflict has been devastating,” Georgieva said.

In the Gaza Strip economic activity dropped 80 percent from October through December compared with a year earlier, the IMF chief says. The war between Israel and Hamas began on October 7 when Hamas launched a shock terror onslaught in southern Israel.

She adds that in the West Bank, economic activity has dropped by 22 percent.