UN warns Gaza suffers world’s worst ever economic crisis

GENEVA: The United Nations warns that Gaza is experiencing the world's worst economic crisis ever recorded. A top UN development agency stated that nine out of ten businesses have been destroyed, leaving hundreds of thousands unemployed. Israel's military offensive, triggered by Hamas in October 2023, devastated the territory of two million people before a ceasefire was announced in October 2025.

Pedro Manuel Moreno, acting secretary-general of UNCTAD, said the collapse of Gaza's economy has wiped out decades of development and created an acute crisis. The territory's daily per capita GDP is just US$0.58. Prices are 274% higher than in 2022, and industrial activity and agricultural production have plummeted by 94%. The conflict has displaced the entire population and rendered nearly all buildings uninhabitable.

Before the conflict, two out of three Gazans were poor, but now everyone is multidimensionally poor. The report highlights a financial crisis in the West Bank, citing reduced access to land and resources due to Israeli settlement expansion. The Palestinian government has taken on massive debt, raising concerns of a potential banking collapse. The political, social, and humanitarian consequences of this crisis are expected to be immense.