Full Breakdown
Economic Collapse in the Occupied Palestinian Territory: A UNCTAD Report
11/27/2025, 9:42:42 PM
Overview of the Economic Crisis
A recent report by the United Nations Conference on Trade and Development (UNCTAD) highlights a catastrophic economic collapse in the Occupied Palestinian Territory, primarily driven by two years of military operations and longstanding restrictions imposed by Israel. The report, titled "Developments in the economy of the Occupied Palestinian Territory," indicates that the Palestinian economy is experiencing its most severe contraction on record, with Gaza facing the most extreme crisis globally since 1960.
Key Findings of the Report
The report reveals that by the end of 2024, the gross domestic product (GDP) of Gaza had plummeted by 83% compared to the previous year, resulting in a cumulative decline of 87% over the two-year period. This has left Gaza's GDP at a mere $362 million, with GDP per capita falling to $161, marking one of the lowest figures worldwide. The economic devastation has pushed all 2.3 million residents of Gaza into poverty, with unemployment rates soaring to 80% and inflation reaching 238%.
In the West Bank, the situation is similarly dire, with GDP contracting by 17% in 2024 due to increased movement restrictions and settlement expansions. The Palestinian economy overall has regressed to levels last seen in 2003, erasing 22 years of development progress.
Humanitarian and Social Implications
The extensive destruction of infrastructure, including homes, hospitals, and schools, has disrupted access to essential services such as food, water, and healthcare. UNCTAD warns that the long-term effects on education and basic services will undermine societal resilience and livelihoods. The report emphasizes that without significant international support, recovery to pre-October 2023 GDP levels could take decades.
Fiscal Challenges and International Aid
The fiscal situation for the Palestinian Authority has deteriorated sharply, exacerbated by Israel's withholding of approximately $4 billion in tax revenues. This has severely limited the government's ability to maintain public services and invest in recovery efforts. UNCTAD estimates that the cost of reconstruction in Gaza alone will exceed $70 billion, necessitating urgent and coordinated international assistance.
Calls for Action
UNCTAD's report calls for immediate and substantial intervention from the international community to halt the economic freefall and address the humanitarian crisis. It advocates for a comprehensive recovery plan that includes restoring fiscal transfers, easing trade and movement restrictions, and ensuring a durable ceasefire. The agency also suggests implementing a universal basic income to support the population during this unprecedented crisis.
Conclusion
The UNCTAD report paints a grim picture of the economic landscape in the Occupied Palestinian Territory, highlighting the urgent need for international intervention to prevent further deterioration. The combination of military operations, economic restrictions, and fiscal challenges has created a humanitarian emergency that demands immediate action to restore stability and support recovery efforts.
