The United Nations has issued a stark warning that Gaza is facing its most severe economic crisis in history as a result of the ongoing Israel-Hamas conflict. According to a report by the UN Conference on Trade and Development (UNCTAD), the Palestinian enclave’s economy has suffered a staggering 83% decline in GDP in 2024, with GDP per capita plummeting to just $161 per year—equivalent to less than 50 cents per day. This marks a grim milestone, as the war has effectively erased nearly 69 years of economic progress in the region.
The devastation caused by the two-year military campaign has left 70% of the enclave’s structures in ruins, with the cost of rebuilding estimated at a massive $70 billion, a figure that would take decades to materialize. UNCTAD attributes the economic collapse to severe inflation, now at 238%, and an unemployment rate nearing 80%, which has plunged nearly all of Gaza’s 2.3 million residents into poverty. The report highlights that the post-October 2023 attacks have pushed the region from a state of stagnation to a complete economic ruin, with the UN calling it ‘the most severe crisis ever recorded.’ The report underscores the complete destruction of the enclave’s economic foundations, which has left its people in dire need of international support.
The conflict has not only crippled Gaza but has also spilled over to affect the wider Palestinian economy. The West Bank is also experiencing its worst economic downturn on record, according to the same report. Israel’s military actions, launched in response to Hamas’ October 2023 attack on southern Israel, have resulted in over 69,500 Palestinian deaths, according to Hamas-run health authorities. Despite the imposition of a US-mediated ceasefire, which was supposed to include Israeli troop withdrawals and the release of 20 remaining hostages in exchange for 2,000 Palestinian prisoners, aid delivery has remained limited. Israeli airstrikes continue, deepening the humanitarian crisis and straining the already fragile infrastructure of the region.
International humanitarian organizations and regional mediators continue to express concern over the slow progress in aid deliveries and the continuation of military operations despite the ceasefire. The situation in Gaza remains dire, with millions of people living in conditions that are increasingly unsustainable. As the conflict drags on, the economic and humanitarian toll continues to mount, raising serious questions about the long-term implications for the region and the world’s response to such crises.