crisis

Ramallah, occupied West Bank – The Palestinian economy is undergoing a severe downturn, driven by Israel’s continued assault on Gaza, intensified restrictions on movement and trade in the occupied West Bank, and a sharp decline in both domestic and external financial resources.

As the Palestinian government struggles to manage an escalating fiscal crisis, official data and expert assessments warn that the economy is approaching a critical threshold – one that threatens the continuity of state institutions and their ability to meet even basic obligations.

A joint report by the Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA), published in the Palestinian Economic Monitor for 2025, found that the economy remained mired in deep recession throughout the year.

According to the report, gross domestic product (GDP) in Gaza contracted by 84 percent in 2025 compared with 2023, while GDP in the occupied West Bank declined by 13 percent over the period. Overall GDP levels remain far below their pre-war baseline, underscoring the fragility of any potential recovery and the economy’s inability to regain productive capacity under current conditions.

The report documented a near-total collapse of economic activity in Gaza, alongside sharp contractions across most sectors in the West Bank, despite a modest improvement compared with 2024. It also recorded a decline in trade volumes to and from Palestine compared with 2023, while unemployment in Gaza exceeded 77 percent during 2025.

Withheld revenues and mounting debt

Palestinian Economy Minister Mohammed al-Amour said Israeli authorities are withholding approximately $4.5bn in Palestinian clearance revenues, describing the move as a form of “collective punishment” that has severely undermined the Palestinian Authority’s (PA’s) ability to function.

“The total accumulated public debt reached $14.6bn by the end of November 2025, representing 106 percent of the 2024 gross domestic product,” al-Amour told Al Jazeera.

The minister said the debt includes $4.5bn owed to the International Monetary Fund, $3.4bn to the Palestinian banking sector, $2.5bn in salary arrears to public employees, $1.6bn owed to the private sector, $1.4bn in external debt, and $1.2bn in other financial obligations.

“These pressures have had a direct impact on the overall performance of the public budget,” al-Amour said, contributing to a widening deficit and sharply reduced capacity to cover operational spending and essential commitments.

All of that has led al-Amour to conclude that the Palestinian economy is undergoing “its most difficult period” since the establishment of the PA in 1994.

Official estimates show GDP contracted by 29 percent in the second quarter of 2025, compared with 2023, while GDP per capita fell by 32 percent over the period. These figures align with a recent report by the United Nations Conference on Trade and Development (UNCTAD), which concluded that the Palestinian economy has regressed to levels last seen 22 years ago.

In response, al-Amour said the government was implementing an “urgent package of measures”.

“The government is rolling out a series of actions that include strengthening the social protection system, supporting citizens’ resilience in Area C [of the West Bank], and backing small and medium-sized enterprises and productive sectors, particularly industry and agriculture,” al-Amour said.

Official data show a sharp drop across nearly all economic activities. Construction contracted by 41 percent, while both industry and agriculture declined by 29 percent each. Wholesale and retail trade fell by 24 percent.

The tourism sector has been among the hardest hit. Following the start of Israel’s genocidal war on Gaza in October 2023, the Ministry of Tourism reported daily losses exceeding $2m, as inbound tourism nearly collapsed. By the end of 2024, cumulative losses were estimated at approximately $1bn.

The Palestinian Economic Policy Research Institute (MAS), citing PCBS data, reported an 84.2 percent drop in hotel occupancy in the West Bank during the first half of 2024 compared with the same period a year earlier. Losses in accommodation and food services alone amounted to roughly $326m.

Despite the downturn, al-Amour said the Ministry of Economy is focusing on sustaining the private sector, substituting Israeli imports across seven key sectors, developing the digital and green economies, and improving the business environment. He noted that about 2,500 new companies continue to be registered each year.

Tourism collapsing

Samir Hazbun, a lecturer at al-Quds University and board member of the Palestinian Federation of Chambers of Commerce and Industry, said repeated crises have hollowed out the economy.

“Over the past five years, all economic sectors have entered successive crises, starting with the COVID-19 pandemic and followed by the war on Gaza,” Hazbun said. “Tourism, one of the most important sectors, has been especially affected, exhausting the local economy and weakening its ability to recover.”

Hazbun said preliminary estimates indicate tourism has suffered direct losses exceeding $1bn, alongside extensive indirect losses resulting from the paralysis of hotels, souvenir shops, travel agencies, tour guides and street vendors.

He added that hotel investments alone are estimated at $550m, with no financial returns for owners, forcing many workers out of the sector due to the absence of job security and safety nets.

Economic expert Haitham Daraghmeh described Palestinian debt as “accumulated debt that increases monthly”, owed to banks, suppliers, contractors, and the telecommunications and health sectors.

“The withholding of clearance revenues is no longer a temporary financial crisis; it has become a factor of complete economic paralysis,” he said.

With external aid frozen and domestic revenues at historic lows, Daraghmeh warned that the government was “no longer able to cover salaries or operational costs”.

“The government is operating like an ATM, with no real capacity for investment or economic stimulus,” Daraghmeh added.

Economic warnings

Daraghmeh said World Bank reports warn that continued failure to pay salaries and meet obligations could trigger comprehensive economic collapse. While some countries, including France and Saudi Arabia, have pledged support, he said none of that assistance has materialised.

He outlined three possible scenarios; the most likely is a continued gradual decline, driven by ongoing revenue withholding and shrinking resources. The second involves international intervention to prevent total collapse, particularly at a decisive political moment. The third scenario could see a conditional breakthrough, tied to European demands for financial reform, anticorruption measures, curriculum changes and elections.

Taken together, the data and expert assessments suggest the Palestinian economy is approaching a dangerous tipping point. Analysts warn that without an end to revenue withholding, renewed international financial support, and a shift in the political context, the economy risks sliding from prolonged crisis into outright collapse.

The question facing Palestinian officials and economists alike is how long the system can endure under siege-like conditions – and whether political and economic shifts will arrive in time to halt what many now describe as a slow and deliberate economic unravelling.

Four residents of Pari, a low-lying Indonesian island, filed the complaint in January 2023.

A Swiss court has agreed to hear a legal complaint against cement giant Holcim, accusing the company of failing to do enough to cut carbon emissions.

NGO Swiss Church Aid (HEKS/EPER), which is supporting the complainants, said on Monday that the court had decided to admit the legal complaint. Holcim confirmed the decision and said it plans to appeal.

The complaint was filed in January 2023 by four residents of Pari, a low-lying Indonesian island that has suffered repeated flooding as rising global temperatures drive up sea levels. The case was submitted to a court in Zug, Switzerland, where Holcim has its headquarters.

According to HEKS, this is the first time a Swiss court has admitted climate litigation brought against a big corporation.

If successful, it would also be the first case seeking to hold a Swiss company legally responsible for its contribution to global warming, the group has previously said.

The lawsuit is also among the first climate cases brought by people in the Global South directly affected by climate change and forms part of a growing push for compensation for “loss and damage”, campaigners backing the case said.

The nongovernmental organisation supporting the plaintiffs said Holcim was selected because it is one of the world’s largest carbon dioxide emitters and the biggest so-called “carbon major” based in Switzerland.

A study commissioned by HEKS and conducted by the United States-based Climate Accountability Institute found that Holcim emitted more than 7 billion tonnes of carbon dioxide between 1950 and 2021 – about 0.42 percent of total global industrial emissions over the period.

Holcim has said it is committed to reaching net-zero emissions by 2050 and is following a science-based pathway to meet that goal. The company says it has cut direct CO2 emissions from its operations by more than 50 percent since 2015.

The plaintiffs are seeking compensation for climate-related damage, financial contributions to flood protection measures on Pari Island, and a rapid reduction in Holcim’s carbon emissions.

Cement production accounts for about 7 percent of global carbon dioxide emissions, according to the Global Cement and Concrete Association.

Liverpool and Egypt star forward Mohamed Salah is centred on winning his first Africa Cup of Nations title.

Egypt captain Mohamed Salah ‌has put aside his travails at Liverpool and is focused on Africa Cup of Nations (AFCON) ‍success with his national ‍team, coach Hossam Hassan said on Sunday.

Egypt’s talisman is at the tournament in Morocco on the back of a fiery outburst after being dropped by the Premier League champions, but his comments and subsequent apology to teammates have had no impact on his form, Hassan ⁠said ahead of Egypt’s opening Group B match against Zimbabwe in Agadir on Monday.

“Salah’s morale in training is ​very high, as if he were just starting out with the national team, and ‍I believe he will have a great tournament with his country,” said the coach.

At 33, it is arguably Salah’s last chance to win an elusive trophy with Egypt and add international honours to an impressive collection of medals at club ‍level.

“I believe Salah ⁠will be among the best players at the tournament, and he will remain an icon and one of the best players in the world.

“I support him technically and morally, because we cannot forget that Salah needs to win the Africa Cup of Nations,” Hassan added.

Liverpool struggles on the backburner

Salah goes into Monday’s match having last started for Liverpool in their 4-1 home loss to PSV Eindhoven in the Champions League at the end of November.

He was dropped for the next game against West ​Ham United, and after a draw with Leeds United on December 6, lashed ‌out at the club and Liverpool coach Arne Slot, telling journalists he felt he had been made a scapegoat for their poor start to the season and suggested that he may not have long left at Anfield.

Hassan said he had kept in ‌touch with his captain throughout the controversy.

“There was constant communication with Mohamed Salah during what I don’t want to call a crisis because any player ‌can have a difference of opinion with his coach at his ⁠club.”

Salah has not scored since Liverpool’s 2-0 win over Aston Villa at the start of November, including an outing with Egypt in a friendly against Uzbekistan last month.

“The same situation happened with Salah when he went through a period of not scoring goals with ‌Liverpool,” Hassan told reporters.

“Then he returned to the right path through the national team, and as a result, he came back at a level even better than before. I believe he will deliver a strong ‍tournament alongside his teammates.”

Salah has twice been a Cup of Nations runner-up, in 2017 and 2021. Egypt have won a record seven AFCON titles, but their last success was in 2010.

For the past 25 years, Somalia’s political transitions have not succeeded by accident. They were sustained through international engagement, pressure, and mediation aimed at preserving fragile political settlements. Today, however, Somalia stands at a dangerous crossroads. The federal government’s unilateral pursuit of power, cloaked in the language of democratic reform, threatens to trigger a legitimacy crisis and undo decades of political gains and international investment.

Universal suffrage is an ideal that all Somalis share. However, deep political disagreement among groups, persistent security challenges, the looming expiry of the government’s mandate, and financial constraints make the timely implementation of universal suffrage nearly impossible.

Pursuing universal suffrage without political consent, institutional readiness, or minimum security guarantees does not deepen democracy or sovereignty; it concentrates power in the hands of incumbents while increasing the risk of fragmentation and parallel authority.

Instead of addressing these constraints through consensus, the government is engaged in a power grab, deploying the rhetoric of universal suffrage. It has unilaterally changed the constitution, which forms the basis of the political settlement. It has also enacted self-serving laws governing electoral processes, political parties, and the Election and Boundaries Commission. Moreover, the government has appointed 18 commissioners, all backed by the ruling Justice and Solidarity Party (JSP).

Meanwhile, Somaliland announced its secession in 1991 and has been seeking recognition for the last three and a half decades. Most of Somalia’s national opposition, along with the leaders of Puntland and Jubbaland Federal Member States, have rejected the government’s approach and formed the Council for the Future of Somalia. These groups have announced plans to organise a political convention in Somalia, signalling their intent to pursue a parallel political process if the government does not listen.

The Federal Government of Somalia does not fully control the country. Al-Shabab controls certain regions and districts and retains the ability to conduct operations well beyond its areas of direct control. Recently, the hardline group attacked a prison located near Villa Somalia, a stark reminder of the fragile security environment in which any electoral process would have to take place.

Given the extent of polarisation and the limited time remaining under the current mandate, the international community must intervene to support Somalia’s sixth political transition in 2026. The most viable way to ensure a safe transition is to promote an improved indirect election model. Somalia’s political class has long experience with indirect elections, having relied on this model five times over the past 25 years. However, even with political agreement, the improved indirect election model for the 2026 dispensation must meet standards of timeliness, feasibility, competitiveness, and inclusivity.

The current government mandate expires on May 15, 2026, and discussions are already under way among government supporters about a unilateral term extension. This must be discouraged. If a political agreement is reached in time, some form of technical extension may be necessary, but this should only occur while the 2026 selection and election processes are actively under way. One way to avoid this recurring crisis would be to establish a firm and binding deadline for elections. Puntland, for example, has maintained a schedule of elections held every five years in January.

The improved indirect election model must also be feasible, meaning it should be straightforward to understand and implement. Political groups could agree on a fixed number of delegates to elect each seat. Recognised traditional elders from each constituency would then select delegates. Delegates from a small cluster of constituencies would collaborate to elect candidates for those seats. This system is far from ideal, but it is workable under current conditions.

Unlike previous attempts, the improved indirect election model must also be genuinely competitive and inclusive. In past elections, politicians manipulated parliamentary selection by restricting competition through a practice known as “Malxiis” (bestman). The preferred candidate introduces a bestman, someone who pretends to compete but is never intended to win. For the upcoming election, the process must allow candidates to compete meaningfully rather than symbolically. A clear threshold of “no manipulation” and “no bestman” must be enforced.

Inclusivity remains another major concern. Women’s seats, which should account for about 30 percent of parliament, have frequently been undermined. Any political agreement must include a clear commitment to inclusivity, and the institutions overseeing the election must be empowered to enforce the women’s quota. Government leaders have also arbitrarily managed seats allocated to Somaliland representatives. Given the unique political circumstances, a separate, negotiated, and credible process is required.

Finally, widespread corruption has long tainted Somalia’s selection and election processes, undermining their integrity. In 2022, the presidents of the Federal Member States managed and manipulated the process. To curb corruption in the 2026 improved indirect election model, one effective measure would be to increase the number of voters per seat by aggregating constituencies. In practice, this would mean combined delegates from several constituencies voting together, reducing opportunities for vote buying.

The international community has previously pressured Somali political actors to reach an agreement, insisting there should be “no term extension or unilateral elections by the government” and “no parallel political projects by the opposition”. This approach, combined with the leverage the international community still holds, can be effective. Somalia’s political class must again be pushed into serious, structured negotiations rather than unilateral manoeuvres.

As before, the international community should clearly define political red lines. The government must refrain from any term extensions or unilateral election projects. At the same time, the opposition must abandon plans for a parallel political agenda, including Federal Member States conducting elections outside a political agreement.

Somalis have repeatedly demonstrated their democratic aspirations. What stands in the way is not public will, but elite polarisation and the instrumentalisation of reform for political survival. At this critical moment, the international community cannot afford to retreat into passivity. Proactive and principled engagement is essential to prevent a legitimacy collapse, safeguard the gains of the past 25 years, and protect the substantial investments made in peacebuilding and state-building in Somalia.

The views expressed in this article are the author’s own and do not necessarily reflect Al Jazeera’s editorial stance.

Welsh rugby’s governing body has said it proposes to grant three licences for men’s professional clubs.

There will be one in Cardiff, one in the east and one in the west, which is expected to result in a straight survival fight between Swansea-based Ospreys and Scarlets in Llanelli.

Buchanan does not agree with the reduction in the number of sides after he pointed to the initial previous change in 2003 from clubs to regions.

“We came from our clubs to our regions and those were big steps,” said Buchanan.

“We had success on the field with Triple Crown, Grand Slams and Six Nations Championships in that era.

“The Scarlets, Cardiff, Ospreys, were all successful stories. So what brings me to this is what’s happened and how have we arrived here?”

The 70-year-old went on:

“What are we going to do to bring ourselves back into being a top tier one country?

“The next step made will be crucial. And I cannot support that next step in taking one of our top regions out.”

Buchanan believes losing Ospreys or Scarlets will be detrimental to the Welsh game.

“Whichever one goes, it’s going to be devastating,” he said.

“The Ospreys stretch from Bridgend, or Cardiff, down to Swansea and the Scarlets are down to the west with a new stadium and everything.

“I don’t see the decision being a step forward. It could be we could lose a lot of support on and off the field.”

The former Wales forward said he had also been against the WRU’s previous plan of two professional sides that was shelved following a public consultation.

“I was horrified with that thought,” he added.

“We are tribal in Wales. We like our local derbies and we like rugby in our areas. Those are important things to me.”

Buchanan also raised the prospect of the professional sides losing some control of the playing side of the organisation to the WRU.

“We have people that have been supportive of Welsh rugby, benefactors that have given their money,” said Buchanan.

“I can’t go into the detail of what is being offered to them, but it isn’t something they’re keen on signing.

“So we’re at loggerheads. It’s crucial we mend those fences and understand it’s a partnership. That’s what is missing at the moment, an agreement with a partnership.

“People have put their hands in their own pockets to put into the professional game and we need to respect that.”

Winter storms are worsening conditions for hundreds of thousands of displaced Palestinians in Gaza, as aid agencies warn that Israeli restrictions are preventing lifesaving shelter assistance from reaching people across the besieged enclave.

The United Nations has said it has tents, blankets and other essential supplies ready to enter Gaza, but that Israeli authorities continue to block or restrict access through border crossings.

In Gaza City’s Shati refugee camp, the roof of a war-damaged family home collapsed during the storm, rescue workers said on Wednesday. Six Palestinians, including two children, were pulled alive from the rubble.

It comes after Gaza’s Ministry of Health said a two-week-old Palestinian infant froze to death, highlighting the risks faced by young and elderly people living in inadequate shelters.

A spokesperson for UN Secretary-General Antonio Guterres said the storms had damaged or destroyed shelters and personal belongings across the territory.

“The disruption has affected approximately 30,000 children across Gaza. Urgent repairs are needed to ensure these activities can resume without delay,” Farhan Haq said.

The Palestinian Civil Defence in Gaza added in a statement that “what we are experiencing now in the Gaza Strip is a true humanitarian catastrophe”.

Ceasefire talks and aid access

The worsening humanitarian situation comes as Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani held talks in Washington, DC, with United States Secretary of State Marco Rubio on efforts to stabilise the tenuous ceasefire in Gaza.

According to Qatari officials, the talks focused on Qatar’s role as a mediator, the urgent need for aid to enter Gaza, and moving negotiations towards the second stage of a US-backed plan to end Israel’s genocidal war against the Palestinian people in Gaza.

Al Jazeera’s Alan Fisher, reporting from Washington, said Sheikh Mohammed stressed that humanitarian assistance must be allowed into Gaza “unconditionally”.

“He said aid has to be taken into Gaza unconditionally, clearly making reference to the fact that a number of aid agencies have said that Israel is blocking the access to aid for millions of people in Gaza,” Fisher said.

The Qatari prime minister also discussed the possibility of an international stabilisation force to be deployed in Gaza after the war, saying such a force should act impartially.

“There has been a lot of talk in the US over the past couple of weeks about how this force would work towards the disarmament of Hamas,” Fisher said.

Sheikh Mohammed also called for swift progress towards the second phase of the ceasefire agreement.

“He said that stage two of the ceasefire deal has to be moved to pretty quickly,” Fisher said, adding that US officials were hoping to announce early in the new year which countries would contribute troops to a stabilisation force.

Israeli attacks continue

Meanwhile, violence continued in Gaza despite the ceasefire, with at least 11 Palestinians wounded in Israeli attacks in central Gaza City, according to medical sources.

The Israeli army said it is investigating after a mortar shell fired near Gaza’s so-called yellow line “missed its target”.

Al Jazeera journalists in Gaza reported Israeli artillery shelling east of the southern city of Khan Younis. Medical sources said Israeli gunfire also wounded two people in the Tuffah neighbourhood of eastern Gaza City.

In the occupied West Bank, where Israeli military and settler attacks have escalated in recent days, Palestinian news agency Wafa reported that Israeli troops shot and wounded a man in his 20s in the foot in Qalqilya. He was taken to hospital and is reported to be in stable condition.

Since October 2023, at least 70,668 Palestinians have been killed and 171,152 wounded in Israeli attacks on Gaza, according to Palestinian health authorities. In Israel, 1,139 people were killed during the Hamas-led October 7 attack, and more than 200 others were taken captive.

Human Rights Watch, an international non-governmental organisation,  has raised concerns over the dire humanitarian situation in the Democratic Republic of Congo, following the capture of Uvira town by M23/AFC rebels.

In a statement released on Monday, Dec. 15, Human Rights Watch reported that the offensive launched by M23/AFC, with support from Rwanda in Uvira and the surrounding areas, has resulted in a significant displacement of populations. It stated that access to humanitarian assistance has been severely diminished.

According to figures from the United Nations, approximately 200,000 people have fled the fighting, including over 30,000 who have crossed the border into Burundi. Congolese refugees arriving in Burundi have informed UN officials that they are receiving little to no humanitarian assistance. Human Rights Watch reports that local hospitals and health centres are overwhelmed amid a decline in humanitarian aid due to limited access and financial resources.

The organisation emphasises the suspension of food assistance in the province, stating that the UN World Food Programme has halted its support throughout South Kivu, worsening the living conditions of displaced populations still in areas affected by conflict. They are urging all forces present on the ground to ensure humanitarian access and the protection of civilians. In particular, they demand that the Rwandan authorities and the M23 guarantee access to essential items for the population’s survival, including water, food, and medicine.

Human Rights Watch states that the lack of progress in humanitarian aid, despite recent diplomatic efforts, is concerning.

“The Washington Accords dealing with the situation in the Eastern DR Congo have not permitted improved security nor better access to aid for the civilians near Uvira in South Kivu,” said Clementine de Montjoye, Human Rights Watch’s principal researcher for the Great Lakes region.

While humanitarian needs are rapidly increasing, Human Rights Watch exhorts its international partners to act quickly.

 “The situation faced by civilians in South Kivu is more and more perilous, and the humanitarian needs are considerable,”  the non-governmental organisation said, calling for an urgent reinforcement of assistance and the adequate protection of civilian populations.

Scientists say up to 4,000 glaciers could melt annually if global warming is not curbed.

The world could lose thousands of glaciers each year over the coming decades unless global warming is curbed, leaving only a fraction remaining by the end of the century, scientists warn.

A scientific study published on Monday in Nature Climate Change warned that unless governments take action now, the planet could reach a stage of “peak glacier extinction” by midcentury with up to 4,000 melting each year.

About 200,000 glaciers remain in the world, and about 750 disappear each year. That rate could rise more than fivefold if global temperatures soar by 4 degrees Celsius (7.2 degrees Fahrenheit) from pre-industrial levels and accelerate global warming, according to the report, which predicted only 18,288 glaciers would remain by the end of the century.

Even if governments meet their pledges to limit warming to 1.5C (2.7F) under the Paris Agreement, the world could still end up losing 2,000 glaciers a year by 2041. At that pace, a little more than half of the planet’s glaciers would be gone by 2100.

That best case scenario appears unlikely. The United Nations Environment Programme already warned last month that warming is on track to exceed 1.5C in the next few years. It predicted that even if countries meet promises they have made in their climate action plans, the planet will warm 2.3C to 2.5C (4.1F to 4.5F) by the end of the century.

Monday’s study was published at the close of the UN’s International Year of Glacier Preservation with the findings intended to “underscore the urgency of ambitious climate policy”.

“The difference between losing 2,000 and 4,000 glaciers per year by the middle of the century is determined by near-term policies and societal decisions taken today,” the study said.

Coauthor Matthias Huss, a glacier expert at ETH Zurich university, took part in 2019 in a symbolic funeral for the Pizol glacier in the Swiss Alps.

“The loss of glaciers that we are speaking about here is more than just a scientific concern. It really touches our hearts,” he said.