Gaza suffers ‘world’s most severe economic crisis on record’, UN says

What Happened

The United Nations Conference on Trade and Development (UNCTAD) released a report on Thursday stating that the Gaza Strip is experiencing the most severe economic crisis on record. The report attributes this to intense military operations since October 2023, which have destroyed over 90 percent of economic establishments and displaced the entire population. UNCTAD estimates that $71.5 billion is required for reconstruction. Additionally, the report characterizes the West Bank as being fragmented into disconnected islands due to Israeli settlement expansion, movement restrictions, and the implementation of two distinct legal regimes for settlers and Palestinians.

Key Actors

Why It Matters

The report highlights the total collapse of productive capacity in Gaza and the economic fragmentation of the West Bank, suggesting that the current conditions render the establishment of a viable, sovereign Palestinian state impossible without significant international intervention and a permanent ceasefire.

Watch For

Monitor international diplomatic responses to the UNCTAD call for large-scale financial and technical support for reconstruction, as well as further reports on the demographic shifts in the West Bank resulting from displacement and settlement expansion.