Gaza's Economic Crisis and Impact

Summary of Economic and Humanitarian Crisis in Gaza

Economic Indicators:

• GDP Decline: Gaza's GDP fell to $362 million in 2024, marking an 83% decline.
• Cumulative Losses: Economic losses in 2023 and 2024 have reached 87%.
• GDP per Capita: Plummeted to $161, around 6.4% of its 2005 peak.
• Inflation Rate: Surged to 238%.
• Unemployment Rate: Rose to 80%, resulting in all 2.3 million residents falling below the poverty line.

Human Development and Poverty:

• Human Development Index (HDI): Projected to fall from 0.716 to 0.643, reversing nearly 25 years of progress.
• Poverty Headcount: The poverty rate in West Bank and Gaza reached 29.2%, comparable to higher-poverty regions such as Yemen (48.6%) and Syria (35.2%).

Humanitarian Impact:

• Structural Damage: By April 2025, approximately 70% of all structures in Gaza had been damaged or destroyed, including critical infrastructure.
• Food Security: Emergency conditions projected to worsen; IPC Phase 5 (Catastrophe) expected to affect 32% of Gaza's population, with 58% facing Emergency (IPC Phase 4) conditions.

Fiscal Conditions:

• Public Debt: Increased to approximately $4.2 billion.
• Fiscal Transfers: Between 2019 and April 2025, Israel withheld or deducted $1.76 billion in fiscal transfers, equating to 12.8% of Palestinian GDP in 2024.
• GDP of Occupied Palestinian Territory: Dropped to $10,959.6 million in 2024 from $15,635.0 million in 2022, reflecting a backslide to 2010 economic levels.

Statistical Changes:

• Night-time Luminosity: Indicator of economic activity decreased by 73% from October 2023 to May 2025.
• IPC Scale Changes: The percentage of people in IPC Phase 5 nearly doubled from 17% to 30% between December 2023 and March 2024.

International Recommendations:

• Rebuilding Costs: UNCTAD estimates rebuilding Gaza will necessitate more than $70 billion.
• Calls for Action: Emphasized need for a durable ceasefire, urgent humanitarian access, and sustained international financing.

Contextual Reference:

• The report indicates that this economic crisis has been significantly impacted by ongoing military actions, characterized by the United Nations Commission of Inquiry as genocide against the Gazan population.

This summary encapsulates the critical economic and humanitarian data regarding Gaza’s situation, projecting serious implications on both the populace and international efforts required for recovery.