UNCTAD: Gaza Faces World's Worst Economic Crisis, Requiring US$71.5 Billion for Recovery
Mohammad Ali (@ChaudhryMAli88) | September 25, 2026
The United Nations Conference on Trade and Development (UNCTAD) has warned of the severe economic crisis in Palestine, highlighting the near-total collapse of Gaza's economy, declining West Bank activity, and a financial crisis threatening the Palestinian government.
Key Findings:
- 92% of Gaza's economic establishments damaged or destroyed.
- Over 90% of working-age Palestinians unemployed.
- Gaza's GDP per capita dropped to $212 in 2025, equivalent to about $0.58 per person per day.
- Unemployment reached a staggering 78%.
- All productive sectors are significantly below their 2022 output levels.
- Agricultural, industrial, and construction production each fell by over 90%.
- Only 1.5% of Gaza's cropland remained accessible and undamaged.
Report Insights:
UNCTAD Acting Secretary-General Pedro Manuel Moreno emphasized the loss of decades of development gains in Gaza. The report estimates Gaza's recovery and reconstruction needs at a substantial US$71.5 billion.
Mutasim Elagraa, UNCTAD Coordinator for Assistance to the Palestinian People, noted that two-thirds of Gaza's population was already living in poverty before the war, and now everyone faces multidimensional poverty.
The report highlights job losses, with an estimated cumulative loss of labor income of US$2.8 billion. Physical infrastructure damage in Gaza is valued at US$35.2 billion, with economic and social losses totaling US$22.7 billion.
Damage and Needs:
- 93% of schools require comprehensive reconstruction.
- More than half of hospitals are out of service.
- Residents' incomes have fallen to just over US$0.50 per day, while prices have tripled.
- Continued hunger, displacement, and poverty persist.