UN Experts Warn of Gaza Economic Collapse Amid Israel’s Blockade and Attacks

The experts stressed that Gaza’s economic life has been “decimated by sheer physical destruction, blockade and siege, and repeated forced displacement.”

A group of UN human rights experts has issued a stark warning about the severe economic emergency and catastrophic human rights consequences resulting from Israel's ongoing military actions and financial restrictions across the occupied Palestinian territory. The experts described the situation as a systematic dismantling of Gaza's economy and a broader financial stranglehold on Palestinian life.

Gaza's Economy on the Brink

The experts stressed that Gaza's economic life has been "decimated by sheer physical destruction, blockade and siege, and repeated forced displacement." Nearly all sectors of economic activity have collapsed, including agriculture, industry, and commerce.

• Unemployment has soared above 80%, leaving families without income.

• GDP has shrunk dramatically, with trade almost at a standstill.

• Poverty is widespread, and famine has already been declared.

The experts reported that Gaza is now facing a liquidity crisis, with most banks and ATMs destroyed. Israel has blocked the inflow of new currency, creating severe cash scarcity. This has triggered hyperinflation, with cooking oil prices increasing by 1,200% and flour by 5,000% by mid-2025.

Even humanitarian workers face extreme hardship, losing nearly 40% of their wages simply to access cash. Meanwhile, digital payment systems are unreliable due to widespread power outages and telecommunications breakdowns.

Humanitarian Law and Rights Violations

The experts declared that Israel's blockade and siege have caused "disproportionate civilian harm", in violation of international humanitarian law and the economic and social rights of Palestinians.

They also condemned restrictions on the United Nations Relief and Works Agency (UNRWA). Israeli laws targeting the agency, combined with the suspension of US funding, have endangered thousands of jobs and disrupted humanitarian assistance—assistance that is now more critical than ever due to Gaza's collapse.

West Bank Under Financial Pressure

The occupied West Bank is also experiencing mounting financial strain. According to the experts, Israel has:

• Arbitrarily withheld tax revenues owed to the Palestinian Authority, crippling its ability to pay salaries and sustain liquidity.

• Threatened to halt the annual banking waiver in November 2025, a move that would prevent Israeli banks from processing transactions with Palestinian banks, effectively cutting Palestinians off from the global financial system.

The suspension of 100,000 Palestinian work permits has also slashed cash inflows. Previously, wages from these workers accounted for one-quarter of Palestine's gross national income.

"These measures exacerbate heavy economic losses from the illegal taking of land and the illegal exploitation of natural resources by Israeli settlers in the occupied West Bank," the experts added.

Systematic Erosion of Rights

The experts emphasised that the combined effect of these restrictions has been devastating:

• Right to work – undermined by unemployment, loss of wages, and blocked permits.

• Right to food and health – damaged by famine, inflation, and restricted aid.

• Right to property – violated through expropriation and destruction of assets.

• Right to water and sanitation – obstructed by blockades and damaged infrastructure.

They argued that Israel, as the occupying power, is obligated under international law to maintain economic life for the population and not exploit natural resources for its own benefit. Instead, current policies are stripping Palestinians of their right to economic self-determination and control over their wealth.

Calls for Urgent Action

The UN experts called on Israel to immediately:

• Lift the blockade and siege of Gaza.

• End violations of humanitarian law.

• Restore liquidity by removing currency restrictions and unfreezing cash flows.

• Secure digital and cash payment systems for both humanitarian and economic activities.

• Commit permanently to banking waivers in the West Bank.

• Release Palestinian tax revenues withheld in violation of the Oslo Accords.

They reminded Israel of the International Court of Justice's 2024 advisory opinion, which ruled that Israel's occupation is illegal and must end as soon as possible. The UN General Assembly has set 17 September 2025 as the deadline for compliance.

Appeal to the International Community

The experts concluded with an urgent appeal to the global community to hold Israel accountable, stressing that failure to act would risk the complete financial collapse of Palestinian society.

"The international community must act urgently to compel Israel to stop violating fundamental rules of international law, respect the economic rights of the Palestinian people, alleviate the humanitarian crisis and prevent financial collapse," they said.