The United Nations Conference on Trade and Development (UNCTAD) warned on Thursday that the Palestinian territory of Gaza is experiencing the “worst economic crisis ever recorded” anywhere in the world, describing a collapse that has “wiped out decades of development.”
A Catastrophic and Worsening Situation
Speaking at a press conference in Geneva to mark the release of the agency’s latest report, UNCTAD’s interim Secretary-General, Pedro Manuel Moreno, said the crisis had “annihilated decades of development” in the enclave.
Mutasim Elagraa, who coordinates UNCTAD’s assistance to the Palestinian people, noted that before October 2023, “two out of three Gaza residents lived in poverty. Today, the entire population of Gaza is affected.” He described a situation that was “already catastrophic” and has since “deteriorated considerably.”
Housing, Industry and Agriculture Devastated
According to the report, which draws on data from the World Bank and the Palestinian Central Bureau of Statistics, the damage has been most severe in the housing sector, with losses estimated at $19 billion for 2025 alone.
Industrial activity and agricultural production in Gaza have fallen by 94%, with only 1.5% of arable land currently usable and accessible — a situation that “implies total dependence on humanitarian food aid,” Elagraa said.
Mass Unemployment and Billions in Lost Income
- The conflict has destroyed hundreds of thousands of jobs, resulting in a cumulative loss of labor income estimated at $2.8 billion since 2023.
- More than 90% of Gaza’s working-age population is now unemployed.
- Israeli military operations have destroyed 92% of economic establishments in the territory.
Reconstruction Bill Keeps Climbing
UNCTAD estimates the cost of recovery and reconstruction in Gaza at $71.5 billion — a figure that “risks increasing further.” The report also cautions that it will take several years for the West Bank, and more than a decade for Gaza, to return to pre-crisis levels of GDP per capita.
