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Source:
اقتصاد سكاي نيوز عربية
UNCTAD: Palestinian economy in crisis
The Palestinian economy is currently facing the worst recorded crisis in the world, due to the complete collapse of Gaza's economy and a decline in activity in the West Bank. The crisis is exacerbated by a financial emergency threatening the government's ability to meet its obligations. Approximately 92% of economic facilities in Gaza have been affected, with unemployment exceeding 90%. Widespread damages include property destruction valued at $19 billion, while per capita GDP is projected to decline to $212 by 2025, and agricultural production has decreased by 94%. The crisis persists partly due to restrictions on financial and trade movements, as well as Israel's withholding of clearance revenues since May 2025. This has forced the Palestinian government to borrow more and has hindered international funding efforts for reconstruction. UNCTAD experts estimate that rebuilding the sector will require around $71.5 billion, and reports emphasize that sustainable peace is closely linked to a strong and resilient Palestinian economy.
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