Preliminary assessment of the economic impact of the destruction in Gaza and prospects for economic recovery

The United Nations Conference on Trade and Development (UNCTAD) released a report on the social and economic deterioration in Gaza since the beginning of the military operation after 7 October 2023. The report quantifies GDP loss, recovery timelines, and enduring effects on poverty and household expenditure. It paints a daunting picture of the development challenges ahead.

The military operation brought economic activity to a standstill across all sectors, leading to severe shortages of essential resources like water, fuel, and electricity. As a result, living conditions deteriorated rapidly, with declining GDP per capita, soaring poverty rates, and widespread unemployment exacerbating the already challenging developmental issues faced by the Gaza Strip.

The assessment underscores the urgent need for immediate humanitarian relief and robust budget support to prevent the collapse of essential public services and maintain a degree of governance to avert large-scale chaos in the region.