Gaza:A severe economic collapse is threatening the Palestinian territories, according to the United Nations Conference on Trade and Development (UNCTAD), which has described the situation in Gaza as the world's most severe recorded economic crisis.
According to Qatar News Agency, Pedro Manuel Moreno, Acting Deputy Secretary-General of UNCTAD, disclosed that 92 percent of Gaza's income-generating facilities have been damaged or destroyed. This situation has resulted in over 90 percent of the working-age population being unemployed.
Mutasim Elagraa, UNCTAD's Coordinator of Assistance to the Palestinian People, reported that multi-dimensional poverty now impacts Gaza's entire population. In 2025, the per capita GDP dropped to USD 212, with housing damages reaching USD 19 billion. Agricultural and industrial outputs have decreased by 94 percent, construction activities have fallen by 99 percent, and 93 percent of schools require complete rebuilding, while over half of the hospitals are inactive. Consequently, daily incomes have plummeted to just over USD 0.50, while prices have tripled.
A joint assessment by the UN, World Bank, and EU estimates that Gaza's recovery needs amount to USD 71.5 billion. Furthermore, the overall Palestinian GDP in 2025 was 20 percent lower than in 2022, with an additional shrinkage of 6.6 percent in the first quarter of 2026.
Elagraa also highlighted the expansion of West Bank settlements, movement restrictions, and the fiscal crisis faced by the Palestinian Authority as significant threats to economic survival. These issues are exacerbated by withheld clearance revenues, bank borrowing, and currency conversion limitations. Elagraa called on the international community to provide urgent funding for recovery efforts and support for sovereign statehood.