Palestinian Economic Monitor: 78% Gaza unemployment, $71.5bn reconstruction needs
Palestine · 14 weeks ago
The World Bank published its economic update on the West Bank and Gaza in May 2026, reflecting information available to end-April 2026.
The West Bank economy grew around 3% in 2025 on a marginal recovery in private consumption as Palestinian workers' access to the Israeli labour market was partly restored. Labour market conditions remain deeply distressed: unemployment in Gaza reached 78% in 2025 — close to fourfold its already high pre-conflict level — while in the West Bank it moderated to 28% from a 35% peak.
The joint World Bank, United Nations and European Union Rapid Damage and Needs Assessment puts recovery and reconstruction needs in Gaza at approximately $71.5bn. Financially, the Palestinian banking system faces mounting liquidity pressure despite outwardly stable indicators, with Palestinian Authority domestic borrowing at $3.3bn as of December 2025.
Source: World Bank — Palestinian Economic Monitor, May 2026