A Palestinian man looks at his phone as he stands in a home destroyed the night before by an Israeli attack, in the Israeli-occupied northern West Bank city of Nablus, on Nov. 25, 2025. (Credit: Jaafar Ashtiyeh/AFP)
The two-year Gaza war and economic restrictions have triggered an unprecedented collapse in the Palestinian economy, wiping out decades of growth, a United Nations report said on Tuesday.
"Extensive damage to infrastructure, productive assets and public services has reversed decades of socioeconomic progress in the Occupied Palestinian Territory," according to the report by the United Nations trade and development agency (UNCTAD).
The Palestinian GDP per capita by the end of last year returned to that of 2003, erasing 22 years of development progress, it added. The resulting economic crisis is among the 10 worst globally since 1960, the report said.
The scale of the damage in Gaza means the enclave will be reliant on extensive international support and recovery could still take decades, it added.
The occupied West Bank is also suffering its most severe downturn on record, driven by movement and access restrictions and the loss of opportunities across all sectors of the economy, the U.N. report said.
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