Gaza's GDP contracts 86 pct amid Israeli attacks

Gaza's gross domestic product (GDP) has contracted by 86 percent year on year in the first three months of 2024 amid intensifying Israeli attacks, according to data released by Palestinian Central Bureau of Statistics (PCBS) on Thursday.

The PCBS statement shows that the GDP of Palestine in the first quarter of 2024 declined by 35 percent year on year, while that of the Gaza Strip sharply shrank by 86 percent due to ongoing Israeli attacks, indicating that the local economic system has collapsed.

The West Bank also saw a year-on-year contraction by 25 percent.

Palestine's GDP per capita was 491 U.S. dollars in the first three months of 2024, down 36 percent compared to the same period of last year, with that of the Gaza Strip decreased by 86 percent.

U.S. tariffs and escalating geopolitical tensions are having incalculable effects on the European economy, and that the European Union (EU) must champion open, rules-based trade and diversify its economic relationships, Spanish economist Ramon Calduch said during an interview with China Media Group (CMG) in Madrid on Monday.

Calduch's comments echoed recent remarks by European Central Bank (ECB) President Christine Lagarde, who noted that "geopolitical tensions are bringing critical dependencies and chokepoints into sharper focus" across supply chains, while Europe’s growth model is simultaneously undergoing a significant transformation.

In light of tariff conflicts with the United States, Calduch said that EU members must defend their interests while also fostering cooperation with economies in other regions to enhance their trade relations.

"We are indeed experiencing a profound transformation of the international order. The EU can no longer assume that the economic, trade, and security conditions of recent decades will remain unchanged. But I also believe we must view this transformation as an opportunity. The EU needs to develop greater strategic autonomy, enhance its own competitiveness, and diversify its international relations," he said.

Calduch warned that recent escalating tensions in the Middle East, driven by U.S. actions, could pose incalculable risks to the EU economy.

"[The escalation of the conflict] could have very significant economic consequences for the EU. I believe it would pose incalculable risks to the EU economy. This conflict affects aspects that are crucial to the EU, such as energy, maritime transport, supply chains, inflation rates, and business confidence," he said.