UNCTAD Confirms Gaza’s Worst Economic Crisis On Record
The United Nations Conference on Trade and Development (UNCTAD) has said that Gaza is going through the worst economic collapse ever recorded. The 2025 Report on the Economy of the Occupied Palestinian Territory shows that things are “unprecedented and catastrophic” after years of restrictions and recent military actions.
Pedro Manuel Moreno, the UNCTAD Deputy Secretary-General, said in Geneva that the destruction of Gaza’s economy had “wiped out decades of progress,” putting both Gaza and the West Bank in a long-term catastrophe. He said that the size of the fall was “the fastest and most damaging ever recorded.”
Gaza’s GDP Collapses By 83% Amid Unprecedented Decline
The UN report says that Gaza’s GDP dropped by 83% in 2024, making its economy only 13% of what it was in 2022. GDP per person fell to $161 a year, or less than $0.50 a day. This is one of the lowest rates in the world.
Mutasim Elagraa, a senior economist, said that Gaza’s economy had lost 87% of its worth since 2022, wiping out seven decades of human progress. He said that “multidimensional poverty now engulfs all Gazans,” with the national unemployment rate at 50% and Gaza’s rate at more than 80%.
West Bank Suffers Deepest Contraction In Its History
The West Bank’s economy likewise saw its worst downturn ever, with GDP plummeting 17% and income per person plunging 19% in 2024. UNCTAD said this was because of increased instability, more settlements, and losing access to 60% of West Bank territory.
The Palestinian Authority is currently in the biggest financial crisis it has ever faced. This is because revenues are falling and Israel is still holding back critical tax transfers, which ordinarily make up two-thirds of the Authority’s income.
Recommended Article: He Lifeng Calls For Stability In China-U.S. Economic Relations
Education Collapse Sets Back Human Capital For Generations
The UNCTAD research shows that Gaza’s education system has been almost completely destroyed, with schools and universities being torn down and kids not being able to go to school for more than two years. It argues that this has “set back human development by a generation.”
Mr. Elagraa said, “Education, skills, and the whole development base have been broken.” He remarked that the loss means that 70 years of development in Gaza have been erased.
Reconstruction Estimated At $70 Billion, Recovery May Take Decades
The UN, EU, and World Bank all agree that it will take more than $70 billion to repair Gaza’s infrastructure. UNCTAD says that even under the best-case scenario, recovery might take several decades.
The research says that just cleaning up the rubble may take 22 years, and clearing away unexploded munitions could take another 10 years. Officials said that long-term rehabilitation is only possible with continued foreign help and unrestricted access to resources for rebuilding.
Ceasefire And Humanitarian Access Deemed Crucial For Recovery
Leaders of UNCTAD highlighted that there can be no economic recovery without a long-lasting truce and free access to humanitarian aid. Mr. Moreno said that the truce in October 2025 was a “critical opportunity,” but he asked for help right away.
He said that “humanitarian aid cannot wait” and stressed that rebuilding needs a free flow of products, unrestricted access, and the elimination of impediments to access. People said that the recent changes were “positive but frustratingly slow.”
Agricultural And Environmental Damage Reaches Devastating Levels
According to UNCTAD data, Gaza’s farming system is in bad shape. The research says that 86% of agriculture is damaged, 83% of wells are destroyed, and 71% of greenhouses are demolished, leaving only 1.5% of farmland useable.
Rebeca Grynspan, the Secretary-General, said that 89% of the water and sanitation infrastructure has been damaged and that explosions have contaminated a lot of the land. The research says that the world community has to act quickly to fix food systems and stop the situation from getting worse.
