Decades of Growth Devastated: Gaza's Economic Collapse Amidst Conflict

A U.N. report reveals the catastrophic collapse of the Palestinian economy in the Gaza Strip and the West Bank due to prolonged conflict and economic restrictions. The economy contracted by 30% in 2024 compared to 2022, marking the worst decline since 1972. Recovery is expected to take decades.

A recent United Nations report highlights a devastating economic collapse in the Palestinian territories, attributing it to the ongoing Israel-Hamas conflict and economic restrictions in the Israeli-occupied West Bank.

The Palestinian economy has seen a dramatic 30% contraction from 2022 to 2024, according to the U.N. Trade and Development agency (UNCTAD). This marks the steepest decline since data collection began in 1972, significantly affecting both Gaza and the West Bank. Experts emphasize the massive scale of damage and predict a recovery period stretching over several decades.

Economic conditions remain dire in Gaza, with per capita GDP at just $161 annually, making it the lowest globally. Meanwhile, the West Bank's downturn is exacerbated by increased settler violence and restrictive policies hampering movement and economic activities.

(With inputs from agencies.)