Hazem Balousha
GAZA CITY: Alaa Al-Banna had been waiting anxiously for the Eid Al-Fitr season to recover some of the business losses he had suffered because of the coronavirus lockdown in the Gaza Strip.
He bought new goods, placed them in a warehouse, and waited for the holidays. But the Israeli attacks on Gaza began days after the lockdown was lifted.
“The assault came to shatter all my hopes,” the 29-year-old perfume and accessory store owner told Arab News.
His warehouse was located in the Al-Shorouq Tower, which was destroyed by Israeli warplanes. Al-Banna estimated his losses to be ILS100,000 ($30,700).
Al-Shorouq Tower is in the largest commercial market in the center of Gaza City. It contained hundreds of businesses, many of which were completely or partially destroyed.
The UN said that the initial material losses in Gaza amounted to several million dollars. The bombing of Gaza caused damage of about $40 million to factories, the strip’s industrial zone and other industrial facilities, while there was a further $22 million of damage to the energy sector and a $27 million blow to agriculture.
The Gaza Strip’s economy has been devastated by previous assaults and the long-standing Israeli blockade.
The unemployment rate is among the highest in the world and more than half of the population lives below the poverty line. Most of the population lacks access to clean water, regular electricity supplies, and a proper sanitation network.
From 2007-2018, the poverty rate in the Gaza Strip increased from 40 percent to 56 percent. The poverty gap rose from 14 percent to 20 percent, and the annual cost of lifting individuals out of poverty quadrupled from $209 million to $838 million.
Al-Banna looked forward to returning to work after removing the rubble surrounding his place. “We have no other choice. We must work again. We will work hard to return to normal life.”
He was intending to marry after Eid, but the damage to his business has forced him to put his plans on hold for the time being.
“My house and my work losses will not enable me to complete the marriage, at least for a year or so,” he added.
Economist Omar Shaban said the population would feel the economic effects of the assault for a long time and that the recovery could take a while, especially after years of violence.
“This is not the first time that the economy has suffered big losses, but the difficulty of the matter did not come from the moment,” he added. “The economic reality has been difficult for years. It will take many years to recover if there is no external financing and security stability.”
