UNCTAD: Gaza, West Bank in Dire Economic Crisis Worst Since 1960

By Staff, Agencies

The United Nations Conference on Trade and Development [UNCTAD] reported that the economic crisis in the occupied Palestinian territories, driven by “Israeli” aggression since 2023, ranks among the world’s ten most severe since 1960.

The organization described the situation in Gaza as “one of its kind” and representing the most severe economic crisis ever recorded.

According to UNCTAD’s report, long-term restrictions and ongoing "Israeli" attacks have pushed the Palestinian economy into its worst recession ever, erasing decades of developmental progress and exacerbating financial and social fragility.

In the report titled "Developments in the economy of the Occupied Palestinian Territory," UNCTAD found that two years of aggression and restrictions caused an unprecedented collapse of the Palestinian economy. This has occurred within a context of comprehensive economic and institutional fragility, resulting in serious social and environmental consequences.

Widespread destruction in the occupied Palestinian territories has erased decades of progress, creating one of the world’s worst economic crises since 1960, with Gaza facing an unprecedented collapse, UNCTAD reports.

Collapsing revenues and withheld transfers have crippled the Palestinian government’s ability to provide services and rebuild infrastructure amid mounting crises.

The UN reports the war has driven the Palestinian economy to near-collapse, plunging Gaza into widespread poverty and triggering the West Bank’s worst recession ever.

The report noted that by 2024, Palestinian GDP had fallen to its 2010 level, while GDP per capita regressed to 2003 levels. According to UNCTAD, in less than two years, 22 years of development gains were wiped out

The 20-year Gaza blockade has left 2.3 million Palestinians cut off, destroying local productivity and making the territory almost entirely aid-dependent.

In 2024, Gaza’s GDP plunged 83%, with two-year losses totaling 87%, leaving per capita income at just $161—only 4.6% of the West Bank’s level.

Destruction, displacement, and damaged infrastructure in Gaza have crippled housing, services, and access to essentials, causing lasting harm to human capital and fueling a humanitarian and economic crisis.

Gaza’s recovery will take decades without major international aid, requiring sustained ceasefire and immediate humanitarian support to restore healthcare, education, water, and infrastructure.

Meanwhile, ongoing settlements and movement restrictions in the West Bank disrupt trade, access to land, and services for over 3.3 million people, raising costs and limiting opportunities.

Since late 2023, West Bank GDP fell 17% and per capita 18.8%, while Gaza’s reconstruction will cost over $70 billion.

UNCTAD urged urgent international action to halt the Palestinian economic collapse, address the humanitarian crisis, and enable recovery through aid, financial transfers, and eased restrictions.