UNCTAD Report: Developments in the economy of the Occupied Palestinian Territory (TD/B/72/3)

30 September 2025

Trade and Development Board

Seventy-second session

Geneva, 24–28 November 2025

Item 4 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:

This note is focused on the devastating economic impact and humanitarian consequences in the Occupied Palestinian Territory of the escalation of hostilities since October 2023, which have intensified the effects of prolonged occupation, triggering socioeconomic collapse. The scale of destruction has unleashed cascading crises, economic, humanitarian, environmental and social, propelling the Occupied Palestinian Territory from de-development to utter ruin. The military operations have ravaged vital infrastructure, including hospitals, universities, schools, places of worship, cultural heritage sites, water and sanitation systems, agricultural land and telecommunications and energy networks. As highlighted in the note, there has been a significant economic fallout due to the deterioration of the situation in the West Bank, where the escalation of violence has led to mass displacement and an unprecedent number of demolitions of Palestinian public and private assets. In the Occupied Palestinian Territory, the gross domestic product has collapsed, unemployment has soared and poverty has surged to unprecedented levels. In addition, the future of Gaza stands at a critical juncture, as uncertainty increases as to whether Gaza can recover and rebuild the foundations of a sustainable, functioning society. Immediate and coordinated international intervention is imperative, to address urgent humanitarian needs, rebuild shattered economic foundations, reverse de-development and restore hope and prospects for lasting peace and stability.

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III. UNCTAD assistance to the Palestinian people

A. Framework and objectives

65. For four decades, UNCTAD has been supporting the Palestinian people through policy-oriented research, the implementation of capacity-building and technical cooperation projects, the provision of advisory services and the promotion of international consensus on the needs of the Palestinian people and their economy.

66. The UNCTAD programme of assistance to the Palestinian people responds to paragraph 127 (bb) of the Bridgetown Covenant, which requests UNCTAD to “continue to assess the economic development prospects of the Occupied Palestinian Territory and examine economic costs of the occupation and obstacles to trade and development… with a view to alleviating the adverse economic and social conditions imposed on the Palestinian people”. The United Nations General Assembly, in successive resolutions (69/20, 70/12, 71/20, 72/13, 73/18, 74/10, 75/20 and 77/22), requested UNCTAD to continue to report to the General Assembly on economic development in the Occupied Palestinian Territory, including East Jerusalem, and the economic costs of the Israeli occupation for the Palestinian people.

67. The UNCTAD programme aims to build and strengthen the institutional capacities of the Palestinian public and private sectors, addressing constraints and identifying emerging needs through the following four clusters:

(a) Trade and macroeconomic policies and development strategies;
(b) Trade facilitation and logistics;
(c) Finance and development;
(d) Enterprise, investment and competition policy.

B. Operational activities under way

68. In response to the above-mentioned resolutions, in 2024, UNCTAD submitted a report to the General Assembly titled “Economic costs of the Israeli occupation for the Palestinian people: The economic impact of the Israeli military operation in Gaza from October 2023 to May 2024”. The report quantitatively assessed the economic cost of the Israeli restrictions and military operation in Gaza during the period.

69. In January 2024, UNCTAD issued Preliminary Assessment of the Economic Impact of the Destruction in Gaza and Prospects for Economic Recovery. The report detailed the extensive damage inflicted on Gaza and proposed recommendations to the international community for economic recovery, to underpin sustainable peace.

70. In December 2024, UNCTAD issued Occupation, Fragmentation and Poverty in the West Bank, considering the welfare cost of the occupation and fragmentation of the West Bank.

71. In 2024 and 2025, UNCTAD provided advisory services to MAS on advanced methodologies for measuring the economic impact of economic shocks and policy scenarios.

C. Coordination, resource mobilization and recommendations

72. In 2024 and 2025, UNCTAD engaged with senior officials from various Palestinian ministries to discuss the Government’s fiscal position, assess lessons learned from past technical cooperation activities and explore future needs and potential support.

73. Despite adverse and increasingly difficult field conditions, UNCTAD continues to support the Palestinian people in coordination with Governments, international organizations, the United Nations country team and other stakeholders, including civil society, providing research, policy analysis and policy recommendations, with a view to helping alleviate the adverse economic and social conditions and pursue the achievement of the Sustainable Development Goals.

74. Adverse political and field conditions hindered the ability of UNCTAD to strengthen technical assistance for the Palestinian people and other stakeholders, including civil society and the private sector. Once conditions improve, member States are encouraged to provide extrabudgetary resources to enable UNCTAD to leverage its expertise in rebuilding the Palestinian economy.