The interim UN Secretary-General, Pedro Manuel Moreno, stated that the economic collapse in Gaza represents the most severe financial crisis ever documented globally, decimating decades of progress. This declaration was made at a press conference held in Geneva, Switzerland, following the release of a UNCTAD report, which marks almost three years since the military offensive initiated by Israel in the Palestinian territory.
The official emphasized that the current Gross Domestic Product (GDP) per capita in Gaza corresponds to only 58 cents per person per day. This figure is approximately 83% below the already low level recorded in 2022, while the price level increased by 274% compared to that same year. The year 2022 preceded the Hamas attack on Israel on October 7, 2023, an event that triggered the major Israeli army offensive in the Gaza Strip.
Data provided by the Ministry of Health of the Palestinian territory, under the administration of Hamas, and considered reliable by the UN, indicates that Israel's military action resulted in the displacement of most of the population, the destruction or damage to most buildings, and over 73,000 fatalities.
Although there is a fragile ceasefire in the Gaza Strip since October 2025, the economy remains in ruins. Mutasim Elagraa, coordinator of UNCTAD humanitarian assistance to the Palestinian people, pointed out that before October 2023, two-thirds of Gaza's inhabitants lived in poverty, and currently, the entire population is affected.
Damage to Gaza's housing sector is considered the most severe, estimated at $19 billion (about €16.7 billion) by 2025. Industrial activity and agricultural production have declined by 94%, leaving only 1.5% of arable land exploitable and accessible, which implies a total dependence on humanitarian food aid.
The report, which uses data from the World Bank and the Palestinian Central Bureau of Statistics, points out that the conflict has eliminated hundreds of thousands of jobs, generating an accumulated loss of labor income estimated at $2.8 billion (€2.5 billion) since 2023. Currently, more than 90% of the workforce in Gaza is unemployed.
The United Nations agency highlights that Israel's military operations have destroyed 92% of the economic infrastructure, raising the estimated cost for the recovery and reconstruction of Gaza to around $71.5 billion (€62.8 billion), with the risk of increase.
Additionally, the document details the worsening of economic restrictions in the West Bank, where limited access to natural resources and land is observed, linked to settlement expansion, which has also caused more forced displacements. The report concludes that both the West Bank and Gaza will require several years and more than a decade, respectively, to recover their pre-crisis GDP per capita level.
UNCTAD advocates that after establishing a permanent ceasefire, the international community must provide large-scale financial and technical support to actively reverse the trend of developmental regression persisting in these regions.