Gaza is currently experiencing the worst economic crisis in its history, with 90% of businesses destroyed and hundreds of thousands unemployed. This warning was issued by a prominent UN development agency on Thursday.
Catastrophic Economic Situation
Israeli military attacks that began after the Hamas group's assault in October 2023 have devastated the two million population of Gaza. These attacks continued until a fragile ceasefire was declared in October 2025.
Pedro Manuel Moreno, the acting head of the United Nations Conference on Trade and Development (UNCTAD), stated: "The collapse of Gaza's economy is the most severe economic crisis recorded in history." He also added that this crisis has destroyed decades of development and severely worsened the economic situation of the people.
Worrying Statistics
UNCTAD's report shows that 92% of Gaza's "economic facilities" have been damaged or destroyed. The daily per capita GDP in the region is only $0.58, and prices have increased by 274% compared to 2022.
The Gaza Ministry of Health, under Hamas control, has reported that over 73,000 people have lost their lives in these conflicts. These conflicts have rendered nearly the entire population of Gaza homeless and have damaged or destroyed most buildings.
Unfortunately, before October 2023, two-thirds of Gaza's residents lived in poverty, and now all residents of the region are experiencing some form of multidimensional poverty. Regrettably, industrial activities and agricultural production have also decreased by 94%, and only 1.5% of arable land is available, leading to Gaza's complete dependence on humanitarian food aid.
Additionally, the report mentions the economic and financial crisis in the West Bank, stating that "limited access to land and natural resources due to the expansion of Israeli settlements" has caused the Palestinian government to heavily borrow from local banks and the Palestinian pension fund and to become indebted to private contractors.
This agency has warned that Palestinian areas are at risk of "banking collapse" and that "the political, social, and humanitarian consequences will be very significant."
