UNCTAD: Palestinian Economy in Deepest Crisis
A report from the United Nations Conference on Trade and Development (UNCTAD) indicates that the Palestinian economy is currently facing the "most severe recorded crisis worldwide." This is the result of a near-complete collapse of the Gaza Strip's economy and a decline in economic activity in the West Bank, along with a financial crisis threatening the Palestinian government's ability to meet its obligations. Approximately 92% of economic establishments in Gaza have been damaged or destroyed, and over 90% of the population suffers from unemployment. The infrastructure has been severely impacted, with 93% of schools damaged and more than half of hospitals rendered inoperative. The estimated cost of reconstruction in Gaza amounts to $71.5 billion. Palestinian gross domestic product (GDP) is projected to decline by 20% in 2025, with economic growth in the West Bank also slowing due to expanding settlements, movement restrictions, and Israel's withholding of clearance revenues since May 2025. This has led the government to borrow and the banking sector to face risks. UNCTAD is calling on the international community to provide the necessary funding and reconstruction aid, emphasizing that establishing a sovereign Palestinian state requires a resilient economy capable of recovery and rebuilding.
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