Talking on the launch of UNCTAD’s 2025 Report on the Economic system of the Occupied Palestinian Territory, the company’s Deputy Secretary-Common Pedro Manuel Moreno mentioned a long time of motion restrictions, mixed with the newest navy operations, had “worn out a long time of progress” and left each Gaza and the West Financial institution going through long-term devastation.
“What we see at this time is extraordinarily worrying,” he mentioned. “Gaza goes by way of the quickest and most damaging financial collapse ever recorded.”
Gaza GDP down 83 per cent
UNCTAD’s information reveals that in 2024, Gaza’s GDP collapsed by 83 per cent in comparison with the earlier 12 months.
GDP per capita fell to only $161 a 12 months, lower than 50 cents per day, among the many lowest wherever on this planet
Gaza’s economic system now stands at simply 13 per cent of its 2022 measurement
Senior economist Mutasim Elagraa, who coordinates UNCTAD’s programme supporting the Palestinian folks, mentioned the collapse was so extreme that it had erased seven a long time of human growth within the enclave.
“Gaza’s economic system has misplaced 87 per cent of its worth since 2022,” he mentioned. “GDP per capita has reverted to ranges seen 22 years in the past. That is the worst financial disaster on file, wherever in current a long time.”
Mr. Elagraa warned that nationwide unemployment has hit 50 per cent, and unemployment in Gaza is now over 80 per cent. “Multidimensional poverty now engulfs all Gazans,” he added.
West Financial institution additionally going through its deepest downturn
The West Financial institution is experiencing its worst contraction ever recorded, with GDP falling by 17 per cent in 2024 and per-capita earnings dropping almost 19 per cent.
UNCTAD says the mixture of:
- rising insecurity,
- intensified motion and entry restrictions,
- increasing settlements, and
- the lack of entry to 60 per cent of West Financial institution land
has “suppressed the economic system for many years” and severely limits future restoration.
Mr. Moreno mentioned the fiscal scenario going through the Palestinian authorities is now “the worst in its historical past”, pushed by collapsing revenues and withheld fiscal transfers, which account for greater than two-thirds of Palestinian tax earnings.
Youngsters in Gaza examine at a UNICEF secure studying centre.
Schooling system destroyed — human capital ‘set again a technology’
The report warns that the destruction of all colleges and universities in Gaza has left youngsters out of schooling for greater than two years — a lack of human capital that may hurt society “for generations to return.”
Mr. Elagraa mentioned this alone represents the collapse of a quarter-century of human growth, including that “schooling, abilities, and the complete human growth base have been shattered. Gaza has misplaced 70 years of human growth.”
$70 billion wanted to rebuild — restoration will take a long time
Based on joint estimates by the UN, the European Union and the World Financial institution, greater than $70 billion might be required to rebuild Gaza.
Mr. Elagraa mentioned that even in essentially the most optimistic situation, with full entry for reconstruction supplies and beneficiant worldwide support, “it’ll take a long time for Gaza to regain the extent of financial exercise it had earlier than the newest battle.”
He added that merely eradicating rubble may take 22 years, based mostly on previous reconstruction efforts, and as much as 10 years could also be wanted simply to clear unexploded ordnance.
Ceasefire is important — and humanitarian entry “can not wait”
All three UNCTAD audio system emphasised that no financial restoration is feasible and not using a sturdy ceasefire.
Mr. Moreno mentioned the ceasefire agreed in October 2025 affords a “important alternative” however warned that help should circulate now.
“Humanitarian help can not wait,” he mentioned. “A long-lasting ceasefire is important to stabilise the economic system and permit reconstruction to start.”
Mr. Elagraa added that growth may solely restart when:
- humanitarian items can enter freely,
- rebuilding supplies are permitted, and
- motion and entry restrictions are eased.
He described current enhancements as “optimistic however sluggish, irritating however shifting in the appropriate path.”
Agriculture devastated — 86 per cent of cropland broken
UNCTAD confirmed that Gaza’s agricultural sector has been “severely crippled.”
Drawing on feedback from UNCTAD Secretary-Common Rebeca Grynspan, officers mentioned:
- 86 per cent of cropland has been broken
- 83 per cent of water wells destroyed
- 71 per cent of greenhouses broken
- Just one.5 per cent of farmland stays usable
- 89 per cent of water and sanitation services are destroyed
Soil contamination from explosives — detonated and unexploded — would require main worldwide intervention.
