GENEVA, Nov 25 (KUNA) -- The United Nations Conference on Trade and Development (UNCTAD) warned on Tuesday of a comprehensive economic collapse hitting the Occupied Palestinian Territory, describing the current economic crisis as among the world's ten worst since 1960 and the worst economic contraction while Gaza is witnessing "the worst economic crisis ever recorded." This came in a new report issued in Geneva titled "Developments in the economy of the Occupied Palestinian Territory" which confirmed that two years of war on the Gaza Strip especially the catastrophic scale of destruction and restrictions have led to an almost complete paralysis of economic activity. Meanwhile, the West Bank is undergoing an unprecedented collapse across various aspects of the Palestinian economy as a result of tightened movement restrictions.
The report stated that Palestinian GDP has fallen back to its 2010 level while GDP per capita has returned to its 2003 level, erasing 22 years of progress in less than two years while the entire population of the Strip is suffering from multidimensional poverty.
The report pointed to a cumulative contraction in GDP between 2023 and 2024 of 87 percent reaching USD 362 million, while Gaza's GDP contracted by 83 percent in 2024, compared with 2023 marking the largest economic decline the region has witnessed in decades.
It added that GDP per capita in Gaza fell to 161 dollars one of the lowest figures globally representing only 4.6 percent of GDP per capita in the West Bank after both figures had been near parity in 1994.
The report emphasized that the continued blockade repeated military operations infrastructure collapse loss of productive capacity and displacement have dismantled Gaza's productive base and created an almost total dependence on external assistance.
The report also confirmed that the West Bank economy contracted by 3.3 percent while amid ongoing restrictions on the movement of people and goods. This has increased fiscal pressures on official institutions and widened the deficit.
The report noted that deteriorating revenues and the withholding of fiscal transfers by the Israeli occupation authorities have severely constrained the Palestinian Government's ability to maintain essential public services and invest in recovery efforts.
The report warned that ongoing settlement expansion and movement restrictions threaten to fragment the West Bank disrupt the economy further deepening contraction in production and commerce.
The report also stated that the reconstruction of Gaza requires around USD 70 billion, warning that any delay in launching reconstruction would prolong economic collapse for years.
UNCTAD called on the international community to support reconstruction plans and a comprehensive recovery strategy for the Occupied Palestinian Territory warning that continued uncertainty would undermine any efforts toward recovery and sustainable development. (end) imk.gta