The war between Israel and Hamas has devastated the Palestinian economy, leaving nearly all of Gaza’s population in poverty, with key quality-of-life indicators such as health and education regressing by 70 years, according to a new report from the United Nations Development Programme (UNDP).
Chitose Noguchi, a senior official at the UNDP, said that the economy of the Palestinian territories, encompassing the Gaza Strip and the West Bank, is now 35% smaller than it was before Israel’s invasion of Gaza a year ago. The UN study revealed that the poverty rate in Gaza has surged to nearly 100%, with unemployment reaching 80%.
“The state of Palestine is experiencing unprecedented levels of setbacks,” Noguchi stated at a UN press conference in Geneva, noting that Gaza has been “pushed back to 1955” in terms of its development.
The destruction caused by the conflict, which was ignited by Hamas’ attacks on Israel on October 7, 2023, has been extensive, with schools, hospitals, and infrastructure obliterated. According to Gaza’s health ministry, almost 43,000 Palestinians have died in the conflict so far.
The UNDP report estimated that repairing Gaza’s damaged infrastructure could cost up to $18.5 billion—almost equivalent to the entire annual economic output of the Palestinian territories in 2022. The human toll is similarly dire, with nearly a million children out of school and healthcare services operating at less than half capacity. Despite ongoing international aid, the report warns that recovery could take over a decade, even under optimal conditions.