UN Agency: Gaza Economy Suffers World's Worst Recorded Crisis
Translated & summarized from Arab48 by baba
A UNCTAD report states Gaza's economy is facing the world's worst crisis, with 92% of businesses damaged or destroyed since October 2023, leading to widespread poverty and unemployment. The West Bank also faces financial instability due to settlement expansion and government borrowing.
The story in 5 lines · by baba
- UNCTAD: Gaza's economy faces the world's worst recorded crisis.
- 92% of Gaza's businesses damaged or destroyed since October 2023.
- Poverty has become universal in Gaza, up from two-thirds before the war.
- Agricultural and industrial production in Gaza dropped by 94%.
- West Bank faces financial risks from settlement expansion and debt.
The United Nations Conference on Trade and Development (UNCTAD) warned on Thursday that the Gaza Strip is experiencing the most severe economic crisis globally, with the ongoing war having destroyed 90% of its businesses and rendered hundreds of thousands jobless. The conflict has caused immense devastation in the densely populated territory of approximately two million people.
Pedro Manuel Moreno, acting secretary-general of UNCTAD, stated at a press conference in Geneva that Gaza's economic collapse represents "the most severe economic crisis recorded in the world." He highlighted the loss of development gains accumulated over decades, noting that "92% of economic establishments in Gaza have been damaged or destroyed since October 2023." The report indicates that per capita GDP has fallen to $212 in 2025, equating to about $0.58 per person daily.
The war has resulted in over 73,500 Palestinian deaths and more than 174,000 injuries, according to figures from the Ministry of Health, which the UN considers reliable. The majority of Gaza's population has been displaced, and most buildings have been destroyed or severely damaged.
Motaz Al-Akrra, UNCTAD's program coordinator for assistance to the Palestinian people, reported that while two-thirds of Gaza's population suffered from poverty before the war, "everyone in Gaza is now suffering from multidimensional poverty." He pointed to a "94% decline in agricultural production," with only 1.5% of arable land remaining accessible, and a similar "94% decrease in industrial production." Al-Akrra also noted Gaza's "complete reliance on humanitarian food aid."
The report also addresses the financial crisis in the West Bank, documenting reduced access to land and natural resources due to Israeli settlement expansion. Al-Akrra stated that the Palestinian government has resorted to borrowing from private banks, exposing the banking sector to "dual risks" of default, which could trigger a crisis affecting not only the financial sector but the entire economy and social, political, and commercial life.
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