A year of conflict between Israel and Hamas has resulted in a “devastating impact on the economy” in the occupied West Bank and Gaza, the IMF said, including a nearly 90 per cent drop in Gaza’s GDP.

“Preliminary official estimates indicate an 86pc decline in GDP in the first half of 2024” in Gaza, said International Monetary Fund communications chief Julie Kozack.

She added that Gaza’s “civilian population faces dire socioeconomic conditions, a humanitarian crisis and insufficient aid delivery.”

In the West Bank, “already grim prospects have further deteriorated, and preliminary official data indicate a 25pc decline in GDP in the first half of 2024,” Kozack told reporters at a regular briefing.