The ongoing bombardment of Gaza by Israel is expected to “severely depress” the Palestinian economy, the International Monetary Fund said according to AFP.

“We do expect the conflict to severely depress economic activity in both the West Bank and Gaza, where even before the conflict GDP growth was set to decline over the medium term,” the IMF communications chief, Julie Kozack, told reporters.

She added that while the economies of the West Bank, Gaza and Israel will be the hardest hit, “the ultimate impact will depend on the duration and intensity of the conflict.”