UN Report Reveals Human-Made Crisis Driving Gaza to Economic Abyss
Gaza is facing an unprecedented economic crisis, with its GDP per capita collapsing to 2003 levels, erasing more than two decades of development, according to a new UN report. The two-year war between Israel and Hamas, combined with economic restrictions, has left the Palestinian territory in a state of near-total ruin.
“The military operations have significantly undermined every pillar of survival,” the report said, highlighting the deep impact on food, shelter, and healthcare, which has plunged Gaza into what the UN calls a human-made abyss.
Decades of Growth Wiped Out
The Palestinian GDP per capita by the end of last year stood at just $161, representing an 87 percent contraction over 2023-2024. According to the UN trade and development agency (UNCTAD), this ranks among the ten worst economic collapses globally since 1960.
Even with aggressive foreign aid and rapid growth, UNCTAD warned that it could take decades for Gaza to return to pre-October 2023 welfare levels. The West Bank is also suffering, facing its worst downturn on record due to restrictions on movement, trade, and employment opportunities.
The Cost of Recovery
Rebuilding Gaza is estimated to cost over $70 billion. UNCTAD emphasized that recovery will require comprehensive international assistance, fiscal support, and measures to ease trade and investment constraints.
The agency also called for a universal emergency basic income, suggesting that all residents receive a renewable and unconditional monthly cash transfer to meet their basic needs during the crisis.
A Multi-Dimensional Crisis
The destruction in Gaza has triggered cascading crises: economic, humanitarian, environmental, and social. According to the UN report, even in an optimistic scenario, the road to recovery is long, with Gaza’s population facing extreme, multidimensional impoverishment.
“The sustained, systematic destruction casts doubt on Gaza’s ability to reconstitute itself as a liveable society,” UNCTAD said, stressing that urgent action is needed to prevent further collapse.
Conclusion
The latest UN findings reveal a stark reality: Gaza’s economy is on the brink, and international support is critical to prevent a complete humanitarian disaster. Public awareness and engagement are essential. If this report moved you, share, comment, or follow to help bring attention to the urgent crisis in Gaza.