Gaza economy contracts significantly

The economy of the Gaza Strip is facing a historic collapse due to the effects of the recent war, with all economic indicators declining unprecedentedly. Per capita income has dropped by 82%, reaching $212 annually in 2025. Agricultural and industrial production sectors have fallen by up to 94% and 99%, respectively. Approximately 92% of economic facilities have been damaged or destroyed, and prices have risen by 274%, leading to widespread poverty. The unemployment rate has reached between 78% and 90%, with hundreds of thousands losing jobs and a loss of $2.8 billion in income. Estimates indicate that Gaza needs over $7 billion for reconstruction and recovery, and it is expected to take at least two decades to restore infrastructure and pre-war production levels, amid ongoing restrictions and blockade.

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