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.
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.
More on Gaza
Related Topics:
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.
Advertisement
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.
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.
Please use Chrome browser for a more accessible video player
2:03
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.
“In addition to the first captured soldiers from North Korea, there will undoubtedly be more. It’s only a matter of time before our troops manage to capture others,” he said in a video posted on X.
X
This content is provided by X, which may be using cookies and other technologies.
To show you this content, we need your permission to use cookies.
You can use the buttons below to amend your preferences to enable X cookies or to allow those cookies just once.
You can change your settings at any time via the Privacy Options.
Unfortunately we have been unable to verify if you have consented to X cookies.
To view this content you can use the button below to allow X cookies for this session only.
His video also included an offer of help to officials in California fighting the ongoing fires there.
It is the first time Ukraine has announced the capture of North Korean soldiers since their entry into the nearly three-year-old war last autumn.
Ukrainian and Western assessments say that some 11,000 troops from Russia‘s ally North Korea have been deployed in the Kursk region to support Moscow’s forces, although Russia has neither confirmed nor denied their presence.
Mr Zelenskyy has said Russian and North Korean forces had suffered heavy losses.
More on North Korea
Related Topics:
“Ukraine is ready to hand over Kim Jong Un’s soldiers to him if he can organise their exchange for our warriors who are being held captive in Russia,” Mr Zelenskyy added.
He posted a short video showing the interrogation of two men, presented as North Korean soldiers.
One of them is lying on a bed with bandaged hands, the other is sitting with a bandage on his jaw.
One of the men said through an interpreter that he did not know he was fighting against Ukraine and had been told he was on a training exercise. He said he hid in a shelter during the offensive and was found a couple of days later.
He said that if he was ordered to return to North Korea, he would, but he was ready to stay in Ukraine if given the chance.
“One of them (soldiers) expressed a desire to stay in Ukraine, the other to return to Korea,” said Mr Zelenskyy, adding that for North Korean soldiers who did not wish to return home, there may be other options available.
Jeff Bezos’s Blue Origin is set for the inaugural launch of its new space rocket on Monday in a development that could add more fuel to the billionaire space race.
The New Glenn rocket is due to blast off from Cape Canaveral – the result of a multi-billion dollar, decade-long effort that could set the stage for Amazon’s satellite constellation venture and dent Elon Musk’s market share.
Mr Musk’s SpaceX has dominated the scene for many years but both Mr Bezos and Virgin Galactic founder Sir Richard Branson have designs on outer space… and the wealth tied up in its exploration.
Jeff Bezos and Blue Origin
“Ever since I was five years old, I’ve dreamed of traveling to space,” Mr Bezos said ahead of his journey to the edge of space in 2021.
He founded the Blue Origin venture with the aim of having “millions of people working and living in space”.
For years it has launched – and landed – its reusable New Shepard rocket to and from the brim of Earth’s atmosphere, but has never sent anything into orbit. That could all change on Monday.
Blue Origin will be hoping its New Glenn rocket will be able to compete with SpaceX’s Falcon 9, the world’s most active rocket.
Compared to Mr Musk’s Falcon 9, the New Glenn is about twice as powerful and its payload bay diameter is two times larger in order to fit bigger batches of satellites.
The upcoming launch is also a key certification flight required by the US Space Force before New Glenn can launch national security payloads as part of multi-billion dollar government tenders Blue Origin hopes to win.
Elon Musk and SpaceX
“I want to die on Mars – just not on impact,” Elon Musk once quipped.
The Donald Trump ally, who is frequently pictured wearing an “Occupy Mars” shirt, has enjoyed relative dominance of the private space industry through his company SpaceX.
Back in 2016, Mr Musk outlined his vision of building a colony on Mars “in our lifetimes” – with the first rocket propelling humans to the Red Planet by 2025, though this deadline does not appear likely to be met.
For many years the company used an image of the Martian surface being terraformed (turned Earth-like) in its promotional material. However, a NASA-sponsored study published in 2018 dismissed these plans as impossible with the technology available then.
SpaceX missions have included both US government contracts and launching the company’s Starlink satellite internet network.
And while Mr Bezos’ New Glenn rocket is much more powerful than the successful Falcon 9, SpaceX’s next-generation Starship, a fully reusable rocket system currently in development, would be more powerful still.
Mr Musk sees Starship as crucial to expanding Starlink’s footprint in orbit. Its next test flight is expected later this month and will involve deploying mock satellites.
Also seeking a stake in the upper atmosphere is Virgin founder Sir Richard, whose Virgin Galactic effort took its first tourists to the edge of space in 2023.
The crew took the passengers about 55 miles (88km) above Earth where they experienced zero gravity during the flight which lasted just over an hour.
“My mum taught me to never give up and to reach for the stars,” the British billionaire once said.
The company is currently taking a pause from flights as it develops new space vehicles, Forbes reported in October last year.
Its new fleet of Delta vehicles are scheduled to resume commercial spaceflight by 2026.
On 19 December, 80-year-old Palestinian grandmother Halima Abu Leil was shot in an Israel Defence Forces (IDF) raid on her neighbourhood in Balata refugee camp in Nablus, West Bank.
Two days later, Halima’s children told Sky News their mother was shot six times by Israeli special forces on her way to buy groceries. She died soon after.
Warning this piece includes an image from CCTV of the moment Halima Abu Leil was shot.
“They could see she is an elderly lady but they shot her six times – in her leg, in her chest. When she was first shot in her legs, she knelt on the ground,” her daughter said.
Newly released grainy CCTV footage shows the moment she was shot and reveals that a van marked as an ambulance was used during the surprise IDF raid.
Halima Abu Leil’s family want the footage to be seen.
Sky News’ Data & Forensics unit has analysed the CCTV and geolocated the street where the video was filmed. It is the exact location Halima’s son told us she “fell to her knees” as she was shot.
Three men are also walking down the street. There is no visible contact between them and Halima. Based on our analysis of their silhouettes, the figure in the middle appears to be holding a weapon. They are likely to be neighbourhood militants.
The three men veer to the right, moving into a sunny area. One takes a seat on some stairs, while the other two stand. They join someone sitting there already.
A few yards away, Halima stops in the middle of the street to speak to another woman with a shopping trolley.
An ambulance pulls into vision, separating the two women, and drives slowly down the street. A white van pulls in behind the medical vehicle.
A few moments later, the passenger door of the white van opens and a faint cloud of smoke is visible, suggesting that a gunshot is fired.
This is the moment Halima falls to her knees.
The men, some of them armed, scatter to the right and left into alleyways along with other people in the street.
A detailed analysis of the footage suggests that visible clouds of smoke on the walls are the result of multiple shots. The footage and imagery we gathered from the site of the killing shows bullet holes in the building next to where Halima was standing.
The woman she was speaking to moments earlier takes cover in a doorway.
At the same time, figures who appear to be Israeli military forces exit the ambulance in the foreground. They are equipped with helmets, backpacks, rifles, and other gear.
Armed figures can also be seen leaving the white van in the background. They are seen aiming their weapons down the street.
Halima appears to get hit again and collapses to the floor. The men likely to be neighbourhood militants are not visibly present in the street when this happens.
At the time of our previous report, the IDF said they had conducted “counterterrorism activity” in Balata camp the morning Halima was killed.
We approached the IDF about the CCTV footage and the use of a medical vehicle to conduct their operation.
This was its response: “The IDF is committed to and operates in accordance with international law. The mentioned incident is under review. The review will examine the use of the vehicle shown in the video and the claims of harm to uninvolved individuals during the exchange of fire between the terrorists and our forces.”
The use of a marked medical vehicle for a security operation could be a contravention of the Geneva Convention and a war crime – as well as Halima’s killing.
The United Nations Special Rapporteur on occupied Palestinian territory Francesca Albanese watched the CCTV video and told Sky News she was shocked but not surprised.
She says: “When I look at the footage, what emerges prima facie is that there were no precautions taken – within these operations whose legality is debatable – to avoid or spare civilian life. No principle of proportionality because there was wildfire directed at the identified target and ultimately no respect for the principle of distinction.
“So this was a murder in cold blood and could be a war crime as an extrajudicial killing.”
According to the United Nations Office of Human Rights in occupied Palestinian territory (OHCHR oPt), Israeli security forces and settlers have killed at least 813 mostly unarmed Palestinians, including 15 women and 177 children, since 7 October 2023.
In a statement to Sky News regarding Halima’s killing, the OHCHR oPT said: “Any deliberate killing by Israeli security forces of Palestinians in the Occupied West Bank who do not pose an imminent threat to life is unlawful under international human rights law and a war crime in the context of Israel’s occupation of the Palestinian Territory.
“This incident must be investigated independently, effectively, thoroughly, and transparently. If there is evidence of violations of the applicable law enforcement standards, those responsible must be held to account.”
Sophie Alexander, international affairs producer, and Michelle Inez Simon, visual investigations producer, contributed reporting.
The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.