UNCTAD Assistance to the Palestinian People: Developments in the Economy of the Occupied Palestinian Territory (TD/B/EX(74)/2)

11 September 2023

Trade and Development Board

Seventy-fourth executive session

Geneva, 20–23 November 2023

Item 6 of the provisional agenda

Report on UNCTAD assistance to the Palestinian people

Developments in the economy of the Occupied Palestinian Territory

Note by the UNCTAD secretariat

Summary

In 2022, the already fragile socioeconomic conditions in the Occupied Palestinian Territory deteriorated as a result of worsening political tensions and security crises that affected all regions. Restrictions on investment and the movement of Palestinian people and goods persisted, with one-sided fiscal deductions by the occupying Power and the further loss of land and natural resources to settlements. As the economy continued to operate well below potential, other persistent challenges intensified, including inflation, poverty, shrinking fiscal space, a decline in foreign aid and the build-up of public and private debt. With heightened political tensions and a long-stalled peace process, 2022 was one of the worst years for Palestinians in recent history.

In addition, as detailed in this report, the inhabitants of the Gaza Strip are confined in one of the most densely populated spaces in the world, in chronic conflict conditions, with inadequate access to clean water, without electricity for half the day and without a proper sewage system. Two thirds of the population live in poverty, with a 41 per cent probability of dropping out of the labour force and, for those who continue to seek work, there is a 45 per cent probability of being unemployed.