The Gaza economic crisis 2025 has reached unprecedented levels, according to the United Nations Conference on Trade and Development (UNCTAD). Gaza’s GDP has plummeted 83%, falling to just $161 per capita, leaving the economy at 13% of its 2022 size. Across the West Bank, economic contraction has also reached record levels, highlighting widespread devastation in Palestinian territories.
Human Development Set Back by Decades
UN reports indicate that destruction of infrastructure, schools, and universities has erased decades of human development. Children in Gaza have missed over two years of education, severely impacting future human capital. The collapse of agriculture and water systems has left 86% of cropland damaged and nearly 90% of water and sanitation facilities destroyed, exacerbating public health crises.
Unemployment and Widespread Poverty
Unemployment in Gaza now exceeds 80%, with national unemployment around 50%, fueling extreme poverty. The crisis has created severe socio-economic pressures, leaving residents dependent on humanitarian aid. UN officials stress that without immediate intervention, including the easing of movement restrictions and access for aid and construction materials, recovery is impossible.
Reconstruction Needs and Timeline
Recovery will require over $70 billion and decades of effort. Reconstruction involves clearing rubble, removing unexploded ordnance, rebuilding schools, hospitals, water systems, and restoring livelihoods. UN experts emphasize that a durable ceasefire and secure humanitarian corridors are essential prerequisites for effective reconstruction.
Humanitarian and Global Implications
The UN warns that failure to address the Gaza economic crisis 2025 could prolong humanitarian suffering and destabilize the region further. International support, both financial and logistical, is critical to enable economic activity, rebuild infrastructure, and restore basic human services. Experts highlight that immediate action is necessary to prevent further erosion of Gaza’s fragile economy and human development.
The UN’s report serves as a stark reminder that Gaza’s path to recovery is long and arduous, requiring sustained global attention, coordinated humanitarian access, and political solutions to allow reconstruction and economic revival.
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