Gaza’s economy is collapsing today, but it wasn’t always like this. Palestine was one of those happy healthy lands that had their own livestock and agriculture. The land whose economy thrived. But then came a dark day in its history in the 19th century. The time when Jewish people fleeing persecution in Europe kept coming to Palestine and their number grew steadily under British rule. Every country in the west shut their doors upon Jews but caring people of Gaza couldn’t do so.
Tensions between the two communities built up over the years, until in 1947 the United Nations proposed dividing the land, and war broke out in 1948. Palestinians welcomed them with open arms, shared their land, livestock, their money and resources out of humanity. But the most human people in the world didn’t get humanity in return. People who were given land out of kindness, stole that land from those kind people.
Slowly but surely they started driving Palestinian people away from their cities through violence. They left some cities quietly for their own peace, and those cities, those stolen lands were later turned into the state of Israel. But the Israelis didn’t stop here, not at all. Like a greedy vulture, Israel wanted more of Palestinian land so they started bombing people of Palestine. And it hasn’t stopped since! Today nothing remains of Palestine, no schools, no institutes, no homes, no hospitals, no buildings, no architecture, no roads, no economy, nothing!
Today Palestine’s economy has contracted by 80-84%. The destruction of infrastructure has resulted in unemployment rate of 80% pushing the poverty rate up to 90%. GDP of Gaza has lost 80% of its value. The labor market has stopped working, leaving four out of five workers unemployed.
With local agriculture, businesses and factories destroyed, more than 95% of households now depend on international aid for their survival. More than 75% of the population is facing severe food insecurity. Limits on trade and aid have made prices really high, so basic goods are now too costly for people who have little money.
According to April 2026 UN-UE joint report Human development in Gaza has been set back by 77 years. Gaza needs at least $71.4B for construction in the next 10 years. It will take several decades to bring the economy back to pre-conflict levels.
The European Union, the United Nations, and the World Bank explained these huge needs in their final Gaza Rapid Damage and Needs Assessment (RDNA). The total cost of $71.4 billion covers different important areas. For the first 18 months, they need $26.3 billion to restore basic services like water and electricity, repair main infrastructure, and restart some of the business activities. Reconstructing destroyed buildings such as houses, schools, and hospitals will cost around $35.2 billion. Over 371,000 housing units were damaged/destroyed.
Moreover, economic and social losses add another $22.7 billion. These losses include damage to businesses, trade, jobs, and social systems.
The full recovery will take a very long time. International plans show a 10-year framework for rebuilding, but bringing back normal life and economy may take generations. The education system is almost completely destroyed, so unfortunately a whole generation will miss out on skills and learning.
There are about 55 million tons of rubble in Gaza. Clearing this debris will take around 7 years under good conditions. Removing unexploded bombs could take up to 10 years. If Gaza grows at its old rate of just 0.4 percent per year, it will not return to its 2022 economic level until the year 2092.
For any recovery to start, there must be a permanent ceasefire, open borders, and a large amount of international aid. One day or another, Walls of Gaza will be rebuilt but the question no international report answers is “will the people inside these walls ever be rebuilt?”