The war in Gaza has devastated the Palestinian economy to a record low

• The economy of Palestine has suffered the largest collapse in history.
• The GDP per capita has returned to the level of 2003.
• The value of the economy in Gaza has surpassed 70 billion dollars.

The economy of the occupied Palestinian territories has experienced the most severe collapse in history, resulting from the large-scale war with Israel against Gaza and ongoing restrictions on trade and movement. This is confirmed by a new report from the UN, published on November 25, 2025.

According to data provided by the United Nations Conference on Trade and Development (UNCTAD), two years of military actions by Israel and three years of restrictions have led to an economic decline that currently ranks among the ten largest declines in the world since 1960.

The report states that "significant disruptions to infrastructure, productive assets, and public services have caused decades of social-economic development to be lost in the occupied Palestinian territories," particularly in Gaza and the West Bank.

The economic situation in Gaza is described as "the worst economic crisis in history." The war, which began on July 7, 2023, in response to an attack by Hamas militants, has resulted in the deaths of at least 69,733 people and injuries to 170,863 individuals.

The GDP of Palestine by the end of last year returned to the level of 2010, while the GDP per capita has reverted to the level of 2003, which indicates a loss of 22 years of development in just two years. In Gaza, the GDP will drop by 83% in 2024 compared to the previous year, achieving only 362 million dollars.

Moreover, the report indicates that the Israeli blockade on trade and movement has led to a greater dependency on external aid. In Gaza, approximately 174,500 buildings have been destroyed.

The West Bank is also experiencing the largest economic decline today, with restrictions on movement and loss of jobs. The UN indicates that the Israeli tax revenues belonging to the Palestinian Authority are further complicating the situation.

UNCTAD estimates that the value of the economy in Gaza has surpassed 70 billion dollars and is linked to a comprehensive recovery plan supported by international aid.

Tags: Middle East/Economy