The economy of the Gaza Strip has experienced an unprecedented collapse, with the per capita GDP dropping by 83% over four years to just 58 cents per person per day, according to the United Nations Conference on Trade and Development (UNCTAD). This figure, released in a recent report, highlights what the organization calls "the worst economic crisis ever recorded in the world." UNCTAD's acting secretary-general, Pedro Manuel Moreno, noted that the economic downturn has erased decades of progress in the region. The cost of living in Gaza is now 274% higher than it was in 2022, the year before the Hamas attack on Israel on October 7, 2023, which triggered a devastating Israeli military response. This conflict has displaced nearly the entire population of Gaza, damaged or destroyed most buildings, and caused more than 73,000 deaths, according to the Palestinian Ministry of Health. A fragile ceasefire has been in place since October 2025, but the economy remains in ruins. Before the conflict began in October 2023, about two-thirds of Gaza’s residents lived in poverty. Now, the entire population is affected, according to Mutasim Elagraa, the UNCTAD representative for assistance to the Palestinian people. The housing sector has been hit the hardest, with an estimated $19 billion in damages for 2025 alone. Industrial and agricultural activities have declined by 94%, with only 1.5% of arable land currently accessible for farming. This has forced Gaza to rely almost entirely on humanitarian food aid. The report, which draws on data from the World Bank and the Palestinian Central Bureau of Statistics, says the conflict has destroyed hundreds of thousands of jobs, leading to a cumulative loss of $2.8 billion in labor income since 2023. Today, more than 90% of the working-age population in Gaza is unemployed, and 92% of economic establishments have been destroyed by Israeli military operations. The report also highlights the growing economic challenges in the West Bank, where restrictions on land access and natural resources have worsened due to the expansion of Israeli settlements. Movement of people and goods has become more restricted, further hampering economic activity in the region. According to UNCTAD, it will take several years for the West Bank to recover its pre-crisis per capita GDP levels and more than a decade for Gaza to do the same. The organization also warns of a budgetary crisis in the Palestinian government, with the local banking sector at risk of collapse. This is due in part to Israel withholding Palestinian revenues, a drop in government income from the economic downturn, and a lack of foreign aid. To support the population and rebuild infrastructure, the Palestinian government has borrowed heavily from local banks and drawn on the Palestinian pension fund, while also delaying payments to private providers. However, these banks and providers, already struggling with the declining ability of individuals to repay loans, cannot sustain this situation indefinitely. This could lead to a banking system collapse, which would paralyze the entire economy. UNCTAD emphasized that once a permanent ceasefire is achieved, the international community will need to mobilize significant financial and technical assistance to reverse the long-term decline in development on both the West Bank and in Gaza.