UNCTAD Report Highlights Ongoing Challenges for Palestinians

October 26, 2023

The latest report by the United Nations Conference on Trade and Development (UNCTAD) sheds light on the challenging economic and social conditions faced by Palestinians in 2022. The report highlights a range of persistent issues and obstacles that have continued to impact the Palestinian economy and society.

Economic Challenges

Despite a 3.9% growth in Palestinian GDP in 2022, per capita real GDP remained 8.6% below its 2019 pre-pandemic level.
In Gaza, real GDP was 11.7% below the 2019 level and close to its lowest level since 1994.
Unemployment remained high at 24% across the Occupied Palestinian Territory, with youth and women facing significant challenges.
Poverty increased, with 40% of the population in need of humanitarian assistance.
Rising global food and energy prices disproportionately affected poorer households.

Economic Dependency on Israel

The Palestinian economy remains heavily dependent on Israel, accounting for 72% of total Palestinian trade in 2022.
Lack of a national currency and reliance on the Israeli shekel limit monetary policy options.
Over-reliance on employment opportunities in Israel and settlements exposes the Palestinian economy to shocks in a volatile environment.

Decline in Donor Aid

Donor aid, which once helped mitigate the impact of occupation, has declined significantly. In 2022, the Palestinian government received just $250 million in donor budget support and $300 million for development projects, down from a total of $2 billion, or 27% of GDP, in 2008.

Gaza’s Ongoing Challenges

Gaza has faced multiple military operations and a land, sea, and air closure since June 2007.
Restrictions on movement, destruction of productive assets, and bans on the importation of essential technologies have severely impacted Gaza’s economy.
Investment in Gaza diminished, and its real GDP per capita shrank by 37% between 2006 and 2022.
Access to health and essential services remains challenging for Gazans, with 80% depending on international aid.

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