UNCTAD has issued a report documenting the economic and social decline in Gaza since the onset of the military operation on October 7, 2023. The report assesses that the Gazan economy contracted by 4.5% over the first three quarters of 2023. The military operation greatly accelerated this fall, leading to a GDP contraction of 24% and a fall in GDP per capita of 26.1% for the year as a whole.
According to the report, if the current military operation were to end instantly, it would take until 2092 for Gaza to return to its 2022 GDP levels, with both GDP per capita and socio-economic conditions continuing to decline.
The report further states, “Nevertheless, even in the most optimistic scenario, where GDP could grow by 10% per year, it would still be required to wait until 2035 for Gaza’s GDP per capita to reach its 2006 level, i.e., before the blockade.”
Regaining Gaza’s economy following the current military operation will demand a monetary commitment significantly greater than the $3.9 billion required after the 2014 military operation. This recovery will necessitate a concerted international effort to restore pre-conflict socio-economic conditions.
The UNCTAD estimate stresses that restoring pre-conflict socio-economic conditions in Gaza will take decades and require substantial foreign aid.
In December 2023, the unemployment rate reached 79.3%. Further, 37,379 buildings, or 18% of all structures in the Gaza Strip, were damaged or destroyed by the military operation.
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