Gaza's Economy Has Entered The World's 'Most Severe Crisis On Record': UN Report

GENEVA, Sept 24 (NNN-Anadolu) -- Gaza's economy has entered the world's "most severe crisis on record," with recovery and reconstruction needs reaching US$71.5 billion amid widespread destruction of productive capacity, Anadolu Ajansi reported, citing a UN report.

The report by the UN Conference on Trade and Development (UNCTAD) said the assessment was based on the peak-to-trough decline in real GDP per capita and the projected duration of recovery.

Gaza's annual real GDP per capita stood at just $212, or $0.58 per day, in 2025, equivalent to just 17 per cent of its already low 2022 level.

Israeli military operations since October 2023 have left 92 per cent of Gaza's economic establishments damaged or destroyed, "bringing productive activity to a near-total halt across all sectors," the report said.

Agricultural and industrial output each plunged 94 per cent compared with 2022, while construction output collapsed by 99 per cent.

The labour market has also been devastated, according to the report, with only 123,300 Gazans employed in 2025, leaving more than 90 per cent of the working-age population without work.

Prices in Gaza remained 274 per cent above 2022 levels in 2025, with food prices "spiralling." Potatoes, for example, cost more than 20 times their pre-conflict level.

Physical infrastructure damage was estimated at US$35.2 billion, more than 2.5 times the pre-conflict real GDP of Gaza and the West Bank combined, alongside US$22.7 billion in economic and social losses.

UNCTAD said total recovery and reconstruction needs had reached US$71.5 billion by early 2026 and "will continue to increase until a sustainable ceasefire is achieved."

Gaza's share of the Palestinian economy had fallen below 4 per cent by 2025, while GDP per capita stood at just 5 per cent of the level in the occupied West Bank, down from near parity three decades ago.

--NNN-ANADOLU