Gaza's economy collapsed 87% between October 2023 and 2024, dropping GDP per capita to $161—levels last seen in 1998. The UN Conference on Trade and Development released this data Nov. 25, 2025. The report shows the steepest economic contraction on record globally. Gaza's GDP fell from $2.1 billion in 2022 to $362 million in 2024.

Israel controls every dollar flowing into Gaza through two mechanisms: a land, sea, and air blockade imposed June 2007, and control over Palestinian Authority tax revenues under the 1994 Paris Protocol. Israel collects about 75% of PA revenue—customs duties and VAT on goods entering Palestinian territories. Israel withheld $1.76 billion in PA tax revenues from January 2019 to April 2025. Israel has used this power six times since the 1990s to pressure Palestinian leadership.

The blockade reduced monthly truck shipments from 10,400 in 2005 to 408 in 2015—a 96% drop. Israel bans virtually all exports from Gaza, restricts construction materials as 'dual-use' items, and controls all border crossings. Before the blockade, Gaza exported agricultural products, textiles, and furniture. After 2007, exports dropped to nearly zero. The World Bank identifies the export ban as the main impediment to economic development.

The blockade caused $16.7 billion in economic losses from 2007-2018 before the 2023 war started, according to UNCTAD. Unemployment jumped from 35% in 2006 to 52% in 2018, then to 80%+ by 2024. Poverty rates doubled from 39% in 2007 to 55% in 2017. Hamas collects internal taxes on goods after Israeli inspection, but Israel controls the borders and PA revenues.

About 174,500 structures—70% of all buildings in Gaza—were damaged by April 2025 according to UN satellite analysis. The UN, World Bank, and European Union estimate reconstruction will cost $70 billion. Initial estimates in early 2025 put the cost at $50 billion. The number grew to $70 billion as assessments revealed full damage: 90% of homes damaged or destroyed, 68% of agricultural land degraded, water and sewage systems collapsed.

Clearing 42 million tons of rubble could take 22 years at current capacity, according to the UN. The UN Mine Action Service estimates 7,500 tons of unexploded ordnance remain scattered across Gaza. Clearing this ordinance could take 10-14 years. Reconstruction faces two bottlenecks: Israel's blockade restrictions on construction materials, and the physical danger of unexploded bombs destabilizing ground under buildings.

Pedro Manuel Moreno, UNCTAD Deputy Secretary-General, said the report documents how Israeli military operations and restrictions pushed occupied Palestinian territory into economic downturn now ranked among the 10 worst collapses recorded globally since 1960. Mutasim Elagraa, senior UNCTAD economist, said extensive damage to infrastructure reversed decades of socioeconomic progress.

International donors face a repeat cycle: they've already paid billions to rebuild Gaza after previous Israeli military operations in 2008-2009, 2012, 2014, and 2021. Each time, donated infrastructure was destroyed in the next round of fighting. Qatar alone provided over $1 billion between 2014-2019. The EU and Germany have been major long-term donors. Donors now question funding reconstruction without guarantees Israel won't destroy it again.