Gaza facing world's worst economic crisis, says UNCTAD

The United Nations Conference on Trade and Development (UNCTAD) warned that the Palestinian economy is currently facing “the most severe economic crisis recorded anywhere in the world", with an estimate $71.5 billion needed for recovery.

It added that 92 per cent of its economic establishments were damaged or destroyed, and more than 90 per cent of the working-age population were without employment.

The warning came as UNCTAD presented its latest report on developments in the economy of the Palestinian Territory at the Trade and Development Board in Geneva.

The report documents the loss of decades of development gains and estimates Gaza's recovery and reconstruction needs at $71.5 billion.

UNCTAD Acting Secretary-General Pedro Manuel Moreno said Gaza's economic collapse represented "the most severe economic crisis ever recorded", while pointing to the loss of development gains accumulated over decades.

According to the report, 92 per cent of Gaza's economic establishments have been damaged or destroyed since October 2023.

Gaza's GDP per capita stood at just $212 in 2025, equivalent to about $0.58 per person per day in GDP terms and only 17 per cent of its 2022 level.

Unemployment reached 78 per cent, while more than 90 per cent of the working-age population was without employment.

The report found that all productive sectors remained far below their 2022 output levels. Agricultural and industrial production each fell by 94 per cent, while construction declined by 99 per cent. 

Less than 1.5 per cent of Gaza's cropland remained accessible and undamaged, further increasing dependence on humanitarian food assistance.

UNCTAD Coordinator for Assistance to the Palestinian People Mutasim Elagraa said that while two-thirds of Gaza's population had been living in poverty before the war, the entire population now faces multidimensional poverty.

The report also documented the loss of hundreds of thousands of jobs since October 2023, with the cumulative loss of labour income estimated at $2.8 billion.

The report estimates physical infrastructure damage in Gaza at $35.2 billion and economic and social losses at $22.7 billion, while total recovery and reconstruction needs are estimated at $71.5 billion. It warns that the figure could rise if further damage is recorded.

He added that 93 per cent of schools require comprehensive reconstruction, while more than half of hospitals are out of service.

Meanwhile, residents’ incomes have fallen to just over $0.50 per day, while prices have tripled, amid continued hunger, displacement and poverty.

The report also addressed the deteriorating financial situation in the occupied West Bank, citing reduced access to land and natural resources associated with Israeli settlement expansion and rising displacement.

UNCTAD called on the international community to provide the necessary funding for recovery and reconstruction, alongside urgent financial support for the Palestinian government.