UNCTAD says Gaza faces world's worst economic crisis, needs $71.5 billion to recover

UNCTAD said the Palestinian economy is facing what it described as the most severe economic crisis recorded anywhere in the world, with Gaza's economy near total collapse, economic activity weakening in the West Bank, and a financial crisis threatening the Palestinian government's ability to meet its obligations. The warning was presented in UNCTAD's latest report on developments in the economy of the Palestinian Territory at the Trade and Development Board in Geneva.

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The report said 92% of Gaza's economic establishments have been damaged or destroyed since October 2023. It said Gaza's GDP per capita stood at $212 in 2025, equal to about $0.58 per person per day in GDP terms and only 17% of its 2022 level.

UNCTAD said unemployment reached 78%, while more than 90% of the working-age population was without employment. UNCTAD Acting Secretary-General Pedro Manuel Moreno said Gaza's economic collapse represented the most severe economic crisis ever recorded and pointed to the loss of development gains accumulated over decades.

The report said all productive sectors remained far below 2022 output levels, with agricultural and industrial production each falling by 94% and construction declining by 99%. The report estimated physical infrastructure damage in Gaza at $35.2 billion and economic and social losses at $22.7 billion.

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It placed recovery and reconstruction needs at $71.5 billion, said less than 1.5% of cropland remained accessible and undamaged, and warned the total could rise if further damage is recorded. It also said residents' incomes have fallen to just over $0.50 per day, prices have tripled, and more than half of hospitals are out of service.

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