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The economic situation in the Gaza Strip indicates a widespread and comprehensive collapse resulting from extensive destruction of infrastructure and economic facilities. The real gross domestic product (GDP) diminished by over 84% in 2025 compared to 2023, making it the lowest level globally. Most economic activities such as agriculture, industry, and services have lost a significant portion of their capacity, with more than 371,000 housing units destroyed and damages totaling $18 billion. This has led to widespread displacement and severe poverty, with approximately 90% of the population suffering from extreme deprivation and over 80% reliant on aid. The need for reconstruction and recovery is estimated at around $71.4 billion over ten years. Meanwhile, the purchasing power continues to decline due to rising prices of basic goods and loss of income sources. The Gaza community faces a major challenge in restoring its productive capacity, creating jobs, and achieving sustainable economic growth.
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