United Nations Report: Gaza Faces Worst Economic Crisis on Record
The United Nations has declared that the two-year Israel-Hamas conflict has led to the worst economic crisis in Gaza’s history. According to a report by the UN Conference on Trade and Development (UNCTAD), the enclave’s GDP in 2024 dropped by 83% from the previous year, while per capita income fell to $161 for the year, which is less than 50 cents a day, among the lowest levels globally. The report estimates the economy has shrunk to just 13% of its 2022 size, with inflation at 238%, unemployment near 80%, and all 2.3 million residents pushed below the poverty line.
UNCTAD stated that the military operations since October 2023 have destroyed the economic foundations of Gaza, erasing 69 years of progress and plunging the enclave into the most severe crisis ever recorded. The report also mentions that about 70% of all structures in the enclave have been damaged, and rebuilding Gaza will cost at least $70 billion and take decades.
The two years of fighting and restrictions have also driven a sharp contraction across the wider Palestinian economy, with the West Bank also sliding into its most severe downturn on record, UNCTAD said. Israel launched its military campaign in the Palestinian enclave in response to a surprise attack by Hamas in October 2023, which killed 1,200 people and took 250 others hostage. The Hamas-run Gaza health authorities report that the ensuing Israeli operations have killed more than 69,500 Palestinians.
A US-brokered ceasefire, which took effect in Gaza on October 10, called for Israeli forces to pull back from parts of the enclave and for Hamas to free the last 20 remaining living Israeli hostages in exchange for about 2,000 Palestinian prisoners. However, Israeli airstrikes have continued despite the truce, while aid deliveries have increased only slowly, leaving conditions on the ground dire, according to UN agencies and regional mediators.
The report warns that the continued war and restrictions have not only devastated Gaza but have also severely impacted the wider Palestinian economy, pushing the entire region into its most severe economic downturn on record. UNCTAD’s findings underscore the urgent need for international aid and support to address the humanitarian and economic crisis in the region.