UN warns Gaza suffers world’s worst ever economic crisis

Geneva witnessed a stark warning from the UN on Thursday, as it declared that Gaza is enduring the world's worst economic crisis ever recorded. The UN Conference on Trade and Development (UNCTAD) reported that 9 out of 10 businesses in Gaza have been destroyed, leaving a staggering number of jobless individuals. This devastating situation was the result of Israel's military offensive, triggered by a Hamas attack in October 2023, which caused extensive damage before a ceasefire was declared in October 2025.

Pedro Manuel Moreno, UNCTAD's acting secretary-general, highlighted that Gaza's economic collapse has not only wiped out decades of development but also plunged its people into an acute financial crisis. The report stated that 92% of Gaza's economic establishments have been damaged or destroyed, with the daily per capita GDP now at a mere US$0.58. Prices have increased by an alarming 274% compared to 2022, making life increasingly difficult for the affected population.

The conflict has had a profound impact on Gaza's industrial and agricultural sectors, with both experiencing a staggering 94% decrease. The report revealed that only 1.5% of arable land is currently accessible, forcing the entire population to rely on humanitarian food aid. Before the October 2023 offensive, only two out of three Gazans were considered poor; however, today, every resident of Gaza is now multidimensionally poor.

Mutasim Elagraa, UNCTAD's coordinator for assistance to the Palestinians, emphasized that the conflict has led to the destruction of hundreds of thousands of jobs, leaving over 90% of Gaza's working-age population unemployed. The economic and financial crisis extends beyond Gaza, as the Palestinian government has borrowed heavily from local banks, tapped into the Palestinian pension fund, and accumulated debt from private contractors.

UNCTAD warns that the political, social, and humanitarian consequences of this crisis will be immense, painting a grim picture of the dire situation facing the people of Gaza and the occupied West Bank.