Full Breakdown
Unprecedented Economic Collapse in Palestinian Territories Following Gaza War
11/25/2025, 8:21:53 PM
Overview of the Economic Crisis
The ongoing conflict between Israel and Hamas has led to a catastrophic decline in the Palestinian economy, marking the worst economic collapse on record. According to a report by the United Nations Conference on Trade and Development (UNCTAD), the economy of the Palestinian territories, encompassing both the West Bank and Gaza, contracted by 30% in 2024 compared to 2022. This downturn is the steepest since data collection began in 1972, surpassing previous economic crises linked to conflicts such as the Second Intifada.
Key Findings from the UN Report
UNCTAD's report highlights that the economic fallout has erased two decades of development, with GDP per capita in Gaza plummeting to approximately $161 per year, equivalent to about 44 cents per person daily. The report describes the situation as one of the ten worst global economic crises since 1960. Pedro Manuel Moreno, UNCTAD's Deputy Secretary General, emphasized the alarming nature of the crisis, stating that the prolonged military operations and longstanding restrictions have plunged the economy into its deepest decline on record.
Humanitarian Impact and Recovery Challenges
The report warns that the humanitarian situation in Gaza is dire, with essential services such as food, shelter, and healthcare severely undermined. UNCTAD estimates that rebuilding the Gaza Strip will require over $70 billion and could take several decades. Even under optimistic conditions, including significant foreign aid and double-digit growth rates, it will take a long time for Gaza to return to pre-war welfare levels.
Rami Al Azzeh, an economist at UNCTAD, noted that the scale of destruction necessitates extensive international support for years to come. He stated, “It will take decades for Gaza to produce more than it used to produce prior to the conflict.”
Official Statements & Responses
In light of the findings, UNCTAD has called for immediate and substantial international intervention to address the crisis. The agency advocates for a comprehensive recovery plan that includes coordinated international assistance, restoration of fiscal transfers, and measures to ease constraints on trade, movement, and investment.
Criticism & Opposition
Critics of the current situation argue that the ongoing military operations and economic restrictions are exacerbating the humanitarian crisis. The report underscores that the systematic destruction of infrastructure casts significant doubt on Gaza's ability to recover as a livable space and society.
Conflicting Reports & Gaps
While the UN report presents a grim picture of the economic collapse, there are varying perspectives on the timeline and feasibility of recovery. Some analysts suggest that with adequate international support, recovery could be expedited, while others remain skeptical about the long-term viability of the region under current conditions.
Verbatim Quotes
- “What we see today is extremely worrying. The prolonged military operation, combined with long-standing restrictions, has pushed the economy of the occupied Palestinian territory into its deepest decline on record,” — Pedro Manuel Moreno, UNCTAD Deputy Secretary General
- “The sustained, systematic destruction casts significant doubt on the ability of Gaza to reconstitute itself as a liveable space and society.” — UNCTAD Report
- “It will take decades for Gaza to produce more than it used to produce prior to the conflict and in order to recover fully.” — Rami Al Azzeh, UNCTAD Economist
