Translation. Region: Russian Federation –
Source: United Nations – United Nations –
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November 25, 2025 Economic development
Palestine is experiencing its deepest economic crisis on record – Gaza's economy has collapsed. A new report from the United Nations Conference on Trade and Development (UNCTAD) calls the decline in GDP in the enclave "unprecedented and catastrophic."
Presenting the 2025 State of the Occupied Palestinian Territory Economic Outlook report, UNCTAD Deputy Secretary-General Pedro Manuel Moreno said that years of restrictions on movement, combined with the impact of military action, had "undone decades of progress" and left Gaza and the West Bank in ruins.
"What we are seeing today is extremely alarming," he said. "Gaza is experiencing the most rapid and devastating economic decline in recorded history."
Gaza's GDP fell by 83 percent
According to UNCTAD:
In 2024, Gaza's GDP contracted by 83 percent compared to the previous year; GDP per capita fell to $161 per year—less than 50 cents per day, one of the lowest in the world; the sector's economy is only 13 percent of its 2022 level.
Senior Economist Mutasim Elaghraa, coordinator of UNCTAD's programme in support of the Palestinian people, stressed that the crisis has effectively destroyed seven decades of development.
"Gaza's economy has lost 87 percent of its value since 2022," he said. "GDP per capita has returned to levels seen 22 years ago. This is the worst economic crisis ever recorded in recent decades."
According to him, the unemployment rate overall has reached 50 percent, and in Gaza it is more than 80 percent.
The West Bank is also experiencing a deep recession.
The West Bank has faced its largest economic contraction on record, with GDP falling by 17 percent and per capita income by nearly 19 percent in 2024.
UNCTAD estimates that the combination of growing instability, tightening restrictions on movement, settlement expansion and loss of access to 60 percent of land in the West Bank has “stifled economic growth for decades” and significantly limits further recovery.
Moreno noted that Palestine's financial situation is "the worst it's ever been." The situation is affected by declining revenues and withheld fiscal transfers, which account for more than two-thirds of tax revenue.
The education system is destroyed
The report warns that the destruction of all schools and universities in Gaza has deprived children of the opportunity to learn. The consequences of these actions, experts note, will be felt for generations.
According to Elagraa, "the education system, skills development, and the entire foundation of human capital have been destroyed. Gaza has lost 70 years of development."
Recovery will require $70 billion
According to joint estimates by the UN, the EU and the World Bank, more than $70 billion is needed to restore Gaza.
Even under the most optimistic scenario, with full access to resources and large-scale international aid, Elagraa said, “Gaza will need decades to return to the level of economic activity that existed before the last conflict.”
Clearing the rubble could take 22 years, and eliminating unexploded ordnance could take up to 10 years.
The importance of observing the ceasefire
All three UNCTAD representatives stressed that without a lasting ceasefire, there will be no recovery.
Moreno noted the ceasefire agreement reached in October 2025, but stressed that aid must begin now.
"Humanitarian aid is needed now," he said. "A long-term ceasefire is needed to stabilize the economy and begin recovery."
Elagraa added that development is only possible with the free entry of humanitarian aid. He described recent developments as "positive," but noted that they are progressing too slowly.
86 percent of farmland was damaged
According to UNCTAD, Gaza's agriculture has been "severely damaged." According to UNCTAD Secretary-General Rebeca Grynspan, 86 percent of farmland has been damaged, 83 percent of water wells have been destroyed, and 71 percent of greenhouses have been damaged. Only 1.5 percent of the land remains suitable for cultivation.
Soil contamination from explosions and unexploded ordnance will require large-scale international assistance.
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