Gaza Economy Enters Worst Crisis in History: UN Report

Gaza: According to a report by the UN Conference on Trade and Development (UNCTAD), Gaza’s economy has entered the most severe crisis in world history, with reconstruction needs reaching $71.5 billion as over 90% of the working-age population remains unemployed.
Gaza’s annual real per capita GDP in 2025 stood at just $212 (58 cents a day) — only 17% of its already-low 2022 level. Since October 2023, Israeli military operations have damaged or destroyed 92% of Gaza’s economic establishments, virtually halting productive activity across all sectors. Agricultural and industrial output fell 94% compared to 2022, while construction output collapsed by 99%.
The labor market was similarly devastated, with only 123,300 people employed in Gaza in 2025. Prices in 2025 were 274% higher than 2022 levels, with food prices spiraling — potato prices, for instance, were 20 times pre-conflict levels. Physical infrastructure damage was estimated at $35.2 billion, alongside $22.7 billion in broader economic and social losses.
UNCTAD said total recovery and reconstruction needs had reached $71.5 billion by early 2026 and would keep rising until a sustainable ceasefire is reached. Gaza’s share of the Palestinian economy fell below 4% by 2025, with per capita GDP just 5% of the occupied West Bank’s level — down from near parity three decades ago.