As a result of the war, the land in Gaza became unsuitable for cultivation. Economic collapse in Gaza: WFP reduced by 83 percent Economic Development
Palestine is experiencing its deepest economic crisis on record as Gaza’s economy collapses. A new report from the United Nations Conference on Trade and Development (UNCTAD) calls the decline in runway in the enclave “unprecedented and catastrophic.”
In presenting a report on the state of the economy of the Occupied Palestinian Territory for 2025, UNCTAD Deputy Secretary-General Pedro Manuel Moreno noted that years of restrictions on movement, combined with the consequences of military action, have “reversed decades of progress” and left Gaza and the West Bank in ruins.
“What we see today is extremely worrying,” he said. “Gaza is experiencing its fastest and most devastating economic decline on record.”
Gaza’s GDP down 83 percent
According to UNCTAD:
- in 2024, Gaza’s GDP fell by 83 percent compared to the previous year;
- GDP per capita fell to $161 a year – less than 50 cents in day, this is one of the lowest in the world;
- The sector’s economy is only 13 percent of its 2022 level.
Senior Economist Mutasim Elagraa, UNCTAD Program Coordinator for Palestinian Support people, stressed that the crisis had effectively wiped out seven decades of development.
“Gaza’s economy has lost 87 percent of its value since 2022,” he said. – GDP per capita indicators have returned to the level of 22 years ago. This is the worst economic crisis ever recorded in recent decades.”
He said the unemployment rate overall had reached 50 percent, and in Gaza more than 80 percent.
The West Bank is also experiencing its deepest recession
The West Bank is facing its biggest economic contraction on record: in In 2024, GDP fell by 17 percent and per capita income by nearly 19 percent.
UNCTAD estimates that a combination of growing insecurity, tightening restrictions on movement, settlement expansion and the loss of access to 60 percent of land in the West Bank have “suppressed economic growth for decades” and will significantly limit further recovery.
Moreno noted that Palestine’s financial situation is “the worst ever.” The situation is affected by dwindling revenues and withheld fiscal remittances, which account for more than two-thirds of tax revenues.
Education system destroyed
The report warns that the destruction of all schools and universities in Gaza has left children unable to learn. The consequences of these actions, experts say, will be felt for generations.
According to Elagraa, “the education system, skills acquisition and the entire foundation of human capital have been destroyed. Gaza has lost 70 years of development. dollars.
As Elagraa reported, even in the most optimistic scenario, with full access to resources and massive international assistance, “Gaza will take decades to return to the level of economic activity that existed before the last conflict.” years.
The importance of respecting the ceasefire
All three UNCTAD representatives emphasized that without a lasting truce there will be no restoration.
Moreno noted the ceasefire agreement, achieved in October 2025, however, he stressed, help must arrive now.
“Humanitarian assistance is needed now,” he said. “In order to stabilize the economy and begin recovery, a long-term truce is necessary.”
Elagraa added that development is only possible if there is free import of humanitarian goods. He described the latest developments as “positive”, but noted that they are developing too slowly. The gases were “seriously undermined.” According to UNCTAD Secretary-General Rebekah Greenspan, 86 percent of farmland was damaged, 83 percent of water wells were destroyed, and 71 percent of all greenhouses were 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.