How Gaza went from desperately poor to even poorer – and why that’s important to the current war
The story we’re currently seeing unfolding in Israel and Gaza at present doesn’t seem to have much to do with economics. It’s about murders, terrorism and missile attacks.
But the economics lurks behind the scenes. It can’t explain all of what’s happening in the Middle East. It certainly can’t justify the horrendous attacks on Israel on 7 October – the worst massacre of Jewish people since the Holocaust.
Nor can it explain the intensity of the Israeli response, which has, according to Palestinian representatives, claimed more lives than were lost in the Hamas attack.
But, alongside religion, history, democracy – and the lack of it – economics is nonetheless an important part of the background story to the instability in this region.
Trustworthy data on the Palestinian Territories is hard to come by, but earlier today UNCTAD, the economic wing of the United Nations, published its annual stock-take of the Palestinian economy – perhaps the most reliable assessment of the situation on the ground. And that situation is stark.
It shows that as of last year, in other words before the recent attacks, the economy of Gaza was, by some measures, the most benighted in the world.
Gross domestic product per capita – the broadest measure of living standards – was a whopping 46% below its 1994 levels.
In other words, in the space of a generation, even as most other countries around the world saw their living standards rise sharply, Gaza’s people have become dramatically poorer.
What’s particularly striking when you look through the data is the divergence between Gaza and the West Bank, the other main part of the Palestinian Territories.
The two regions’ economies had roughly similar GDP per capita up until around 2007, when Hamas seized control of the Gaza Strip.
But look at what happened next. Economic growth in the West Bank meant that its economy is now considerably bigger and more prosperous than its 2007 levels.
The Gaza Strip, meanwhile, has seen its levels of prosperity crumple in a fashion rarely seen elsewhere in the world.
It’s a similar story if you look at unemployment rates in each of the regions: while they were relatively close up until 2007 (albeit that the Gaza jobless level was always a few percentage points above the West Bank level) in the post-Hamas period, the two lines have diverged dramatically.
The jobs market in the West Bank is (or was, as of 2022) tough. The jobs market in Gaza was hopeless.
Compare the Gaza Strip to other countries and you see just how much of an outlier it is.
While the unemployment rate in Israel is 3.5%, the comparable rate in the Palestinian Territories is 24% and the rate in the Gaza Strip is at 45%.
This is higher than any other country in the world – and note that the number is significantly higher for women and for young people.
There are plenty of explanations for this divergence. After Hamas took control of Gaza, Israel imposed a series of restrictions on the flow of people and trade in and out of the region.
The border is heavily policed. Entry and exit by air and sea is banned and there are only two crossing points towards the West Bank and East Jerusalem.
The majority of residents have been “locked in” for years, making it more like a prison than a fully functioning state.
Look at this chart of exports from Gaza and the West Bank and you get a sense of what this means in practice.
While the West Bank (and for that matter most other economies) have been able to grow their exports each year, as new businesses seek out opportunities to trade with Israel (the trade mostly goes to Israel), Gaza’s exports have essentially flatlined.
Of course, this does not cover the black market, but it’s the best picture we have available.
Israeli authorities say these restrictions are an essential part of policing Hamas and preventing terrorist activity. Trade is monitored and controlled to prevent weapons coming in and leaving.
That goes, too, even for items like fertiliser and steel tubes, since they could be used to make missiles. And they have more than half a point: Hamas social media accounts have gleefully boasted about how productive its home-made ammunition factories have been – despite these restrictions.
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Reality of Palestinians in Gaza City
These restrictions are not the only explanation for the collapse in Gaza’s economy: corruption is rife throughout the territory, with the upshot that much of what enters the country for the purpose of helping civilians is sometimes seized by Hamas leaders.
It is a sorry story, and the upshot is that Gaza has been a failing economy for many years, with levels of deprivation and poverty which have mounted to world-leading levels.
None of the above can explain, let alone justify, the attacks of October 7. In a parallel universe, Gaza could have been blessed with leadership which would turn the lines in the chart around – though that would also have been reliant on Israel lifting its various restrictions.
But numbers like these tend to make people feel desperate.
Gaza was already desperately poor before Hamas won its election and seized power. It has become significantly poorer, and significantly more desperate, in the years since.
The Women’s Euros begin in Switzerland today – with extreme heat warnings in place.
Security measures have had to be relaxed by UEFA for the opening matches so fans can bring in water bottles.
Temperatures could be about 30C (86F) when the Swiss hosts open their campaign against Norway in Basel this evening.
Players have already seen the impact of heatwaves this summer at the men’s Club World Cup in the US.
The Spain squad pauses for refreshments during a training session. Pic: AP
Read more: A complete guide to the Women’s Euros
It is raising new concerns in the global players’ union about whether the stars of the sport are being protected in hot and humid conditions.
FIFPRO has asked FIFA to allow cooling breaks every 15 minutes rather than just in the 30th minute of each half.
There’s also a request for half-time to be extended from 15 to 20 minutes to help lower the core temperature of players.
FIFPRO’s medical director, Dr Vincent Gouttebarge, said: “There are some very challenging weather conditions that we anticipated a couple of weeks ago already, that was already communicated to FIFA.
“And I think the past few weeks were confirmation of all worries that the heat conditions will play a negative role for the performance and the health of the players.”
Football has seemed focused on players and fans baking in the Middle East – but scorching summers in Europe and the US are becoming increasingly problematic for sport.
England are the tournament’s defending champions. Pic: AP
While climate change is a factor, the issue is not new and at the 1994 World Cup, players were steaming as temperatures rose in the US.
There is now more awareness of the need for mitigation measures among players and their international union.
FIFPRO feels football officials weren’t responsive when it asked for kick-off times to be moved from the fierce afternoon heat in the US for the first 32-team Club World Cup.
FIFA has to balance the needs of fans and broadcasters with welfare, with no desire to load all the matches in the same evening time slots.
Electric storms have also seen six games stopped, including a two-hour pause during a Chelsea game at the weekend.
This is the dress rehearsal for the World Cup next summer, which is mostly in the US.
Players are also feeling the heat at the Club World Cup. Pic: AP
The use of more indoor, air conditioned stadiums should help.
There is no prospect of moving the World Cup to winter, as Qatar had to do in 2022.
And looking further ahead to this time in 2030, there will be World Cup matches in Spain, Portugal and Morocco. The temperatures this week have been hitting 40C (104F) in some host cities.
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FIFA said in a statement to Sky News: “Heat conditions are a serious topic that affect football globally.
“At the FCWC some significant and progressive measures are being taken to protect the players from the heat. For instance, cooling breaks were implemented in 31 out of 54 matches so far.
“Discussions on how to deal with heat conditions need to take place collectively and FIFA stands ready to facilitate this dialogue, including through the Task Force on Player Welfare, and to receive constructive input from all stakeholders on how to further enhance heat management.
“In all of this, the protection of players must be at the centre.”
England are looking to defend their title at the 2025 Women’s Euros.
But conquering this year’s competition will be tricky right from the group stages.
The Lionesses will come up against Wales, who made history by qualifying for their first major tournament, and two other European heavyweights: France and the Netherlands.
As the tournament kicks off, extreme temperatures have raised questions about whether players are being protected in hot and humid conditions.
Here is everything you need to know about Euro 2025.
Where is Euro 2025 being held?
This year’s Women’s Euros is being held in Switzerland.
The competition kicks off on Wednesday 2 July, with the final on Sunday 27 July.
Matches will be held in eight venues across Switzerland from Zurich to Geneva, with the final game being played in Basel.
What teams have qualified?
A total of 16 teams have qualified for the competition.
Eight teams progressed directly from the qualifying league stage and seven teams qualified via the play-offs.
As hosts, Switzerland qualified automatically.
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Is it too hot for football?
The teams playing in the tournament are:
• England
• Belgium
• Denmark
• Finland
• France
• Germany
• Iceland
• Italy
• Netherlands
• Norway
• Poland
• Portugal
• Sweden
• Spain
• Switzerland
• Wales
How much do the winners get?
This year, the total available prize money for the tournament stands at €41m (£34m) – more than doubling from the prize pot in 2022.
All competing sides receive a €1.8m (£1.5m) participation fee, with the remaining money going to the quarter-finalists, semi-finalists, runners-up and winners.
The maximum prize money achievable for the tournament winners, if they also win their three group stage matches, is €5.1m (£4.3m).
England celebrate their victory at Women’s Euro 2022. Pic: Reuters
Who has (and hasn’t) made the England squad?
Some notable names will be missing from the England squad this year.
Goalkeeper Mary Earps announced in May that she is retiring from international football with immediate effect.
Within days, two other names, Fran Kirby and Millie Bright, also announced they would not be taking part in Euro 2025.
The departure of Bright, Earps and Kirby is a loss of three experienced players – between them they have 218 international appearances.
So who has manager Sarina Wiegman picked for the 23-person squad, and who has been snubbed?
Use our slider below to look through some of the key players, or see a list of the full England squad, here.
History-making Wales squad announced
The Welsh women’s national football team has qualified for an international tournament for the first time.
Their 23-player squad was announced by head coach Rhian Wilkinson at the summit of Yr Wyddfa (Snowdon) on Thursday morning.
Rhian Wilkinson following the squad announcement at the summit of Yr Wyddfa. Pic: PA
Midfielder Angharad James captains the side, and is one of four players to have played over 100 times alongside fellow Wales veterans Jess Fishlock, Hayley Ladd and Sophie Ingle, who also made the cut.
Ingle hasn’t featured for club or country since suffering an ACL injury during a pre-season friendly for Chelsea last September.
The 33-year-old returned to full training at the beginning of the month and her inclusion comes as a significant boost ahead of Wales’ first major tournament.
Fishlock, Wales’ record appearance holder and goalscorer, will hope to add to her 47 international goals as she leads the line.
The side beat the Republic of Ireland 2-1 in a play-off match to secure their spot in the Euros.
Wales have qualified for an international tournament for the first time. Pic: Reuters
Wales head coach Rhian Wilkinson said after the match: “This team found a way. They never broke for each other, they stayed strong. I’ve never been prouder of a team.
“This team stands on the shoulders of giants [the pioneering female footballers] who came before, and now they’ve proven how good they are.”
Welsh women’s manager Rhian Wilkinson. Pic: Reuters
What are the Euro 2025 groups?
Similarly to the World Cup, teams in the Euros are split into four groups.
The top two teams in each group will progress to the knockout stage, where games will be decided by extra-time and penalties if needed.
The knockout stage pits the winners of the group against the runners-up, meaning Germany, Poland, Denmark or Sweden could lie in wait for England and Wales in the last eight.
Group A: Switzerland, Norway, Iceland, Finland
Group B: Spain, Portugal, Belgium, Italy
Group C: Germany, Poland, Denmark, Sweden
Group D: France, England, Wales, Netherlands
When are England and Wales playing?
The Lionesses start their bid for the Euros title on 5 July when they take on France. The game will take place in Zurich at 8pm UK time.
Wales kick off their campaign earlier the same day, against the Netherlands. That game starts at 5pm UK time in Lucerne.
The two nations will be the last teams in Group D to face each other.
Their showdown will be held in the city of St Gallen, on Sunday 13 July. Kick-off is at 8pm UK time.
Can England win the Euros again?
The Lionesses lifted the Euros trophy in front of a home crowd in 2022, after beating Germany 2-1.
Chloe Kelly delivered the deciding goal in extra time, but can the team do it all again?
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Can England win the Euros again?
Lucy Bronze admitted to Sky News that the team faces “one of the hardest” groups going into the tournament, but added: “We know on any given day, when we play at our best we can beat any team in the world.”
The right-back said: “We have got one of the most talented squads going into the Euros… I wouldn’t want to be a defender on the other team going against some of our players.
“We know it is going to be difficult, there are maybe a handful of teams that are capable of winning it, and we are definitely one of them.”
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‘Handful of teams could win the Euros – we’re one’
After naming her squad in May, Weigman told Sky News sports correspondent Rob Harris: “This group is a very well-balanced mix of players with multiple tournaments on their CVs and also those that will make their tournament debuts.
“I am excited to see what we are capable of this summer.”
How to watch the Euros 2025
Eevery single match of the Women’s Euros will be shown across the BBC and ITV, with the two broadcasters showing half of the 31 matches each, except the final, which will be shown on both channels.
Every match will also be screened live at three venues across London and Birmingham.
TOCA Social at The O2 and Westfield White City in London and The Bullring in Birmingham is hosting watch parties for fans hoping to catch all the action.
A flight in Australia was delayed for two hours after a stowaway snake was found in the plane’s cargo hold.
The reptile was found as passengers were boarding Virgin Australia Flight VA337 at Melbourne Airport bound for Brisbane.
Snake catcher Mark Pelley said he thought it could be venomous when he approached it in the darkened hold.
The snake in the cargo hold. Pics: Mark Pelley
But it turned out to be a harmless 60cm green tree snake.
“It wasn’t until after I caught the snake that I realised that it wasn’t venomous. Until that point, it looked very dangerous to me,” Mr Pelley said.
He said when he entered the cargo hold, the snake was half hidden behind a panel and he feared it could flee deeper into the plane.
“I had one chance to grab it, and if it escaped past me it would have gone into the panels, and then that would have been extremely hard to catch,” he told Sky News.
“Snakes are very fast-moving, thin and agile,” he added.
Mr Pelley said he told an aircraft engineer and airline staff they would have to evacuate the aircraft if the snake disappeared inside the plane.
“I said to them if I don’t get this in one shot, it’s going to sneak through the panels and you’re going to have to evacuate the plane because at that stage I did not know what kind of snake it was,” he explained in a separate interview.
“But thankfully, I got it on the first try and captured it,” he added. “If I didn’t get it that first time, the engineers and I would be pulling apart a [Boeing] 737 looking for a snake still right now.”
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Mr Pelley said because the snake is native to the Brisbane region he suspects it came on board inside a passenger’s luggage and escaped.
“It’s actually very uncommon for snakes to be on the plane,” he told Sky News.
For quarantine reasons the snake cannot be returned to the wild.
The animal, a protected species, has been given to a Melbourne vet to find a home with a licensed snake keeper.
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