The economic fallout has set Gaza back dramatically, with the UN estimating that it would take 350 years to restore the region’s GDP to its pre-conflict level of 2022. The ongoing war between Israel and Hamas has caused severe devastation to Gaza’s economy, with a UN report describing the situation as “utter ruin.” According to the United Nations Conference on Trade and Development (UNCTAD), the year-long conflict, which began after Hamas killed over 1,000 Israelis on October 7, 2023, has left Gaza’s economic infrastructure almost completely paralyzed. The economy had already been struggling under longstanding restrictions and the effects of previous military actions.
The war’s impact has been catastrophic across various sectors. Construction output is down by 96%, agriculture by 93%, manufacturing by 92%, and services by 76%. Unemployment soared to 81.7% in early 2024, with further deterioration likely. The report highlighted widespread destruction, including significant damage to schools, hospitals, and essential infrastructure such as water, sanitation, and hygiene facilities.
The economic fallout has set Gaza back dramatically, with the UN estimating that it would take 350 years to restore the region’s GDP to its pre-conflict level of 2022, assuming a return to the previous growth trend. Moreover, the restrictions and military actions between 2007 and 2023 contributed to a staggering $35.8 billion loss in potential GDP, equivalent to 17 times the actual GDP in 2023.
The war’s toll extended beyond the economy, inflicting a humanitarian crisis. By mid-2024, a significant portion of the region’s residential and health infrastructure was either damaged or destroyed, exacerbating the already dire living conditions for Gaza’s population.
The conflict’s toll on Gaza extends far beyond economic collapse; it has triggered a humanitarian, social, and environmental crisis of unprecedented scale. The damage inflicted on essential infrastructure is vast, with nearly 88% of school buildings sustaining some form of damage by July 2024, rendering the education system almost inoperable. Additionally, 21 out of 36 hospitals were forced out of service, while 45 of the 105 primary healthcare facilities became non-operational, further straining the already limited healthcare services.
Water and sanitation infrastructure has also suffered extensive destruction, with over 59% of the facilities heavily damaged. The impact on water supply and hygiene services has raised serious public health concerns, as access to clean water and proper sanitation remains limited for the majority of Gaza’s population. More than 62% of residential buildings have been damaged or destroyed, leaving countless families displaced and worsening the region’s housing crisis.
