UNCTAD Says Gaza Faces World's Worst Economic Crisis, Needs US$71.5 Billion Recovery

(@ChaudhryMAli88) NEW YORK, (UrduPoint / Pakistan Point News / WAM - 25th Sep, 2026) The United Nations Conference on Trade and Development (UNCTAD) warned that the Palestinian economy is currently facing 'the most severe economic crisis recorded anywhere in the world,' amid the near-total collapse of the Gaza Strip's economy, declining economic activity in the West Bank, and an escalating financial crisis threatening the Palestinian government's ability to meet its obligations. It added that 92% of its economic establishments damaged or destroyed and more than 90% of the working-age population without employment. The warning came as UNCTAD presented its latest report on developments in the economy of the Palestinian Territory at the Trade and Development board in Geneva. The report documents the loss of decades of development gains and estimates Gaza's recovery and reconstruction needs at US$71.5 billion. UNCTAD Acting Secretary-General Pedro Manuel Moreno said Gaza's economic collapse represented the most severe economic crisis ever recorded, while pointing to the loss of development gains accumulated over decades. According to the report, 92% of Gaza's economic establishments have been damaged or destroyed since October 2023. Gaza's GDP per capita stood at just $212 in 2025, equivalent to about $0.58 per person per day in GDP terms and only 17% of its 2022 level. Unemployment reached 78%, while more than 90% of the working-age population was without employment. The report found that all productive sectors remained far below their 2022 output levels. Agricultural and industrial production each fell by 94%, while construction declined by 99%. Less than 1.5% of Gaza's cropland remained accessible and undamaged, further increasing dependence on humanitarian food assistance. UNCTAD Coordinator for Assistance to the Palestinian People Mutasim Elagraa said that while two-thirds of Gaza's population had been living in poverty before the war, the entire population now faces multidimensional poverty. The report also documented the loss of hundreds of thousands of jobs since October 2023, with the cumulative loss of labour income estimated at US$2.8 billion. The report estimates physical infrastructure damage in Gaza at $35.2 billion and economic and social losses at US$22.7 billion, while total recovery and reconstruction needs are estimated at US$71.5 billion. It warns that the figure could rise if further damage is recorded. He added that 93% of schools require comprehensive reconstruction, while more than half of hospitals are out of service. Meanwhile, residents' incomes have fallen to just over US$0.50 per day, while prices have tripled, amid continued hunger, displacement and poverty. Across the Palestinian economy as a whole, GDP contracted by 20% in 2025 compared with 2022, while the economy shrank by 6.6% in the first quarter of 2026 compared with the same period in 2025. The report also addressed the deteriorating financial situation in the occupied West Bank, citing reduced access to land and natural resources associated with Israeli settlement expansion and rising displacement. UNCTAD called on the international community to provide the necessary funding for recovery and reconstruction, alongside urgent financial support for the Palestinian government. It stressed that establishing an independent and sovereign Palestinian state, in accordance with UN resolutions, requires a resilient economy capable of recovery and reconstruction. According to the UN official, this is a prerequisite for achieving regional and global peace.