ALWAGHT- UNCTAD: Gaza’s economy in historic collapse, West Bank shrinking, recovery could take decades without international aid.
The Palestinian economy is facing one of the worst crises globally since 1960, largely due to Israeli aggression since 2023, according to UNCTAD. Gaza, in particular, is experiencing an unprecedented economic collapse, while the West Bank faces its deepest recession ever. Long-term restrictions and repeated military operations have erased decades of development and left the population highly vulnerable.
The report highlights widespread destruction of infrastructure, production capacity, and public services, which has severely limited the Palestinian government’s ability to provide essential services or invest in recovery. By 2024, GDP had fallen to 2010 levels, and GDP per capita regressed to 2003 levels, effectively wiping out 22 years of progress. In Gaza, GDP contracted 83% in a single year, leaving the population dependent on external aid.
The humanitarian impact is severe: housing, healthcare, education, and access to basic services have been heavily disrupted, causing long-term damage to human capital and community resilience. Recovery is expected to take decades even with significant international assistance. UNCTAD stressed that sustainable recovery requires a stable ceasefire and the uninterrupted delivery of humanitarian aid.
In the West Bank, ongoing settlement expansion and movement restrictions continue to fragment the economy, impacting over 3.3 million people and reducing GDP by 17%. Rebuilding Gaza alone is estimated to cost over $70 billion. UNCTAD called on the international community to act urgently, coordinating aid, easing restrictions, and restoring financial transfers to prevent further collapse and lay the groundwork for long-term peace and development.
