Gaza suffers 'worst economic crisis ever observed', says UN

The Palestinian territory of the Gaza Strip is currently going through the "worst economic crisis ever observed" in the world, the UN agency for trade and development (UNCTAD) warned on Thursday, September 25.

This crisis "annihilates decades of development", Pedro Manuel Moreno, acting secretary general of UNCTAD, declared to the press in Geneva, on the occasion of the publication of a report by the organization.

Before October 2023, "two out of three Gaza residents lived in poverty. Today, the entire population of Gaza is affected", explained the head of coordination of assistance to the Palestinian people for UNCTAD, Mutasim Elagraa, referring to "an already catastrophic situation" which "has worsened considerably".

"In Gaza, the housing sector suffered the heaviest damage, estimated at $19 billion for 2025", industrial activity and agricultural production in Gaza fell by 94%, with 1.5% of arable land exploitable and accessible to date, which "implies total dependence on humanitarian food aid", he listed.

According to the report, which is based in particular on data from the World Bank and the Palestinian Central Bureau of Statistics "the conflict has destroyed hundreds of thousands of jobs", leading to a cumulative loss of labor income estimated at 2.8 billion dollars (2.46 billion euros) since 2023.

Today "more than 90% of Gaza's working-age population is unemployed," notes the organization.

Israel's military operations have destroyed 92% of economic establishments, UNCTAD further indicates, recalling that the amount necessary for the recovery and reconstruction of Gaza, estimated at 71.5 billion dollars (63 billion euros), "risks further increasing".

“It will take several years for the West Bank and well over a decade for Gaza to return to their pre-crisis level of GDP per capita,” the report assesses.