The Palestinian economy is in deep crisis amid Israel’s war on Gaza, tighter movement and trade restrictions in the West Bank, and collapsing financial inflows. A 2025 report by the Palestinian Central Bureau of Statistics and the Palestine Monetary Authority warns the downturn is nearing a breaking point for state institutions.
The report shows Gaza’s GDP plunged 84 percent compared with 2023, while the West Bank’s fell 13 percent, leaving overall output far below pre-war levels and recovery prospects extremely weak.
AJE