UNCTAD’s 2025 report on the economy of the Occupied Palestinian Territory highlights a catastrophic economic collapse in Gaza and a severe downturn in the West Bank. Deputy Secretary-General Pedro Manuel Moreno emphasized that decades of movement restrictions, compounded by recent military operations, have wiped out long-standing progress, leaving both regions facing prolonged devastation. Gaza, in particular, is experiencing the fastest and most damaging economic collapse on record, with GDP plummeting by 83 per cent in 2024, GDP per capita dropping to just $161 annually, and the economy shrinking to 13 per cent of its 2022 size.
Senior economist Mutasim Elagraa noted that Gaza’s economic collapse has erased seven decades of human development, with national unemployment at 50 per cent and over 80 per cent in Gaza. Multidimensional poverty now affects the entire population. The West Bank is also suffering its worst contraction, with GDP falling 17 per cent and per-capita income declining nearly 19 per cent in 2024. Factors such as rising insecurity, intensified movement restrictions, expanding settlements, and loss of access to 60 per cent of West Bank land continue to suppress the economy and hinder recovery prospects.
The report also highlights the collapse of human capital in Gaza, where destruction of schools and universities has left children without education for over two years, erasing decades of human development. Rebuilding the region will require more than $70 billion, and even with full international support and access for reconstruction materials, economic recovery could take decades. Clearing rubble alone could take 22 years, while removing unexploded ordnance may require up to 10 years.
UNCTAD officials stressed that a durable ceasefire and immediate humanitarian access are essential for any recovery. They called for unrestricted entry of humanitarian goods and reconstruction materials, alongside easing movement and access restrictions. The agricultural sector has been particularly devastated, with 86 per cent of cropland damaged, 83 per cent of water wells destroyed, 71 per cent of greenhouses damaged, and only 1.5 per cent of farmland remaining usable. Additionally, 89 per cent of water and sanitation facilities are destroyed, and soil contamination from explosives requires substantial international intervention.
