"The Palestinian economy is undergoing a severe downturn, driven by Israel's continued assault on Gaza, intensified restrictions on movement and trade in the occupied West Bank, and a sharp decline in both domestic and external financial resources. As the Palestinian government struggles to manage an escalating fiscal crisis, official data and expert assessments warn that the economy is approaching a critical threshold one that threatens the continuity of state institutions and their ability to meet even basic obligations."
"According to the report, gross domestic product (GDP) in Gaza contracted by 84 percent in 2025 compared with 2023, while GDP in the occupied West Bank declined by 13 percent over the period. Overall GDP levels remain far below their pre-war baseline, underscoring the fragility of any potential recovery and the economy's inability to regain productive capacity under current conditions."
Public debt reached $14.6bn, exceeding GDP, while unemployment in Gaza exceeded 77 percent by late 2025. Gaza GDP contracted by 84 percent in 2025 compared with 2023, and the occupied West Bank GDP declined by 13 percent over the same period. Economic activity in Gaza has nearly collapsed and most West Bank sectors contracted sharply despite modest improvement from 2024. Trade volumes to and from Palestine declined compared with 2023, and Israeli authorities are withholding substantial funds. The fiscal crisis threatens the continuity of state institutions and the ability to meet basic obligations, undermining any near-term recovery.
Read at www.aljazeera.com
Unable to calculate read time
Collection
[
|
...
]