UN warns Gaza economic collapse is spreading to the West Bank
The United Nations has warned that widespread destruction in Gaza has put the Palestinian economy at risk of a deeper collapse, with the crisis now reaching the West Bank as well. The body said continued conditions could lead to the systematic collapse of the Palestinian banking system and financial structure.
According to a new report by the UN Conference on Trade and Development (UNCTAD), 94% of industrial and agricultural activity in Gaza has disappeared, and 92% of the territory’s infrastructure and businesses have been damaged or completely destroyed. The report described the current crisis as the most severe economic crisis ever recorded in Gaza’s history.
The assessment said labour and production indicators in Gaza have collapsed on a large scale, while poverty and unemployment have risen to unprecedented levels. The UN stressed that this trend reached its peak after October 7, 2023.
According to UNCTAD, Gaza’s gross domestic product per capita in 2025 has fallen to about $212 a year, equivalent to 58 cents a day. That figure represents an 82% decline compared with 2022.
The report also shows that Gaza’s residents now have access to only 1.5% of agricultural land, a development that has further increased pressure on livelihoods and domestic production capacity.
UNCTAD is the United Nations body responsible for trade and development, which monitors economic and trade trends in countries and territories. Gaza and the West Bank are the two main parts of the Palestinian territories, whose economies in recent years have also faced persistent restrictions and severe vulnerability.
