The Palestinian economy is estimated to shrink by 26.9 per cent after seven months of bombardment, with the poverty rate surging, said a new United Nations Development Programme (UNDP) assessment released.

According to AFP, the estimates, released by the Economic and Social Commission for Western Asia, also found that the Palestinian poverty rate will continue climbing to 58.4pc.

“Every additional day that this war continues is exacting huge and compounding costs to Gazans and all Palestinians,” said UNDP Administrator Achim Steiner in a statement.

“These new figures warn that the suffering in Gaza will not end when the war does,” he added.

He warned of a “serious development crisis” stemming from the massive losses over a short period.

Should the bombardment continue for nine months, poverty is expected to more than double from pre-war levels, while the drop in gross domestic product would reach 29pc, the UNDP said.