UN Report Details Total Collapse of Gaza Economy

Since October 2023, 92% of economic establishments in Gaza, ranging from small shops to agricultural farms, have been destroyed. The collapse is near-total: industrial and agricultural output have plummeted by 94%, and the construction sector has effectively vanished with a 99% decline. These conditions have pushed unemployment to 78%, while the GDP per capita has cratered to $212, or roughly 58 cents per day.

A Legacy of De-development

While the current assault has accelerated the destruction, UNCTAD analysts emphasize that the crisis is a radical escalation of a long-standing pattern. Decades of occupation and a tightened blockade, which began in earnest around 2006, had already hollowed out the Palestinian economy. Mutasim Elagraa, the UN coordinator for assistance to the Palestinians, noted that the region has shifted from "development blocked" to "development reversed." The report estimates that $71.5 billion is required for reconstruction, though officials warn that restoring infrastructure alone cannot succeed without rebuilding functioning markets and productive capacity. Amid these findings, international human rights bodies continue to scrutinize the use of starvation as a method of warfare, a charge currently facing Israeli leadership at the International Criminal Court.