UN Warns Gaza's Economy in Ruins, Recovery Could Take 350 Years
The United Nations has warned that Gaza’s economy is in "utter ruin" due to a year-long war with Israel, with recovery potentially taking up to 350 years to reach pre-war levels.
A report by the UN’s trade and development agency (UNCTAD) shared at last month's UN General Assembly, highlights the devastating impact the conflict has had on Gaza’s economy and infrastructure.
The report shows that economic activity in Gaza, already weak before the war, has nearly stopped completely, except for critical health and food services. Severe shortages of water, fuel, and electricity have also crippled daily life.
Gaza’s construction output has dropped by 96%, agriculture by 93%, manufacturing by 92%, and the services sector by 76%. Unemployment in Gaza soared to 81.7% in early 2024, a figure that the UN predicts will remain high as military actions continue.
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The report described the damage as "an unprecedented humanitarian, environmental, and social catastrophe" and emphasized that Gaza’s recovery will take decades. "It may take 350 years for Gaza's economy to return to the level it was before the war," the report warned.
(undated/AP)
The war followed a period from 2007 to 2022, during which Gaza’s economy was severely impacted by restrictions on goods and people's movement imposed by Israel. The UN estimated that without these restrictions, Gaza's gross domestic product (GDP) could have been nearly 78% higher by the end of 2023.
The war has caused massive destruction. By July 2024, 88% of schools were damaged, 21 of 36 hospitals were out of service, and over 60% of homes were either damaged or destroyed. Additionally, more than half of Gaza’s water and sanitation infrastructure has been severely damaged, making basic services hard to access.
UNCTAD reports that Gaza saw its worst economic downturn in the last quarter of 2023, with its GDP falling by over 80% compared to the previous quarter.
The report also mentioned a steep economic decline in the West Bank, where unemployment has nearly tripled since the start of Israel’s military operations. Pedro Manuel Moreno, UNCTAD’s Deputy Secretary-General, called for urgent action from the international community to address Gaza’s economic collapse and work toward long-term peace.
The report highlights the severe pressure on the Palestinian Authority in the West Bank and the loss of over 300,000 jobs since the war began, pushing the unemployment rate from 12.9% to 32%.
The UN continues to call for a ceasefire and greater international efforts to support Gaza and the West Bank during this crisis.