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UN: Gaza offensive may cost Palestinians $4 billion
The Israeli military offensive in the Gaza Strip in December and January caused $4 billion of losses to the Palestinian economy, a UN think tank said Tuesday.
Overall, the losses represent "three times the size of the Gaza economy," said Mahmud Elkhafif, coordinator of the UN Conference and Trade and Development's (UNCTAD) assistance program for the Palestinians.
"Initial estimates put the economy's direct and indirect losses at around $4 billion, including the costs associated with cushioning the humanitarian impact of the military campaign of around one billion dollars," UNCTAD said in a report.
Some $88 million was wiped off GDP due to the halt in economic activity alone in Gaza, it said.
Direct losses, including damage to infrastructure, public buildings, power and water supplies, as well as lost raw material stocks could reach $2.5 billion, it added.
The losses in Gaza came after "another lost year for Palestinian development" in 2008 as the overall Palestinian economy lost ground for the ninth straight year, according to UNCTAD.