Erasing 22 Years of Progress: The Gaza Economic Crisis 2026 and Massive Unemployment

Gaza's economic clock has been wound back two decades. According to Al Jazeera, the prolonged conflict has decimated the enclave's economy, returning the GDP to 2010 levels and GDP per capita to figures not seen since 2003. It's a staggering reversal that has erased 22 years of development in just twenty-four months.

Gaza Economic Recovery Challenged by 80% Unemployment

The labor market in the Gaza Strip has effectively ceased to function. The unemployment rate has skyrocketed to 80%, leaving over 550,000 people across Palestine without work. Alaa Alzanin, once a laborer earning up to $15 a day in infrastructure, now sits idle in a tent with his family of eight, unable to provide even basic nutrition.

The humanitarian toll is heavy. Majed Hamouda, a father with polio, watches his young son—once a prize-winning student—collect trash to sell for survival. "We are like dead people, but not buried yet," Hamouda told reporters. The World Food Programme warns that aid is far below the 2,000 tonnes daily target needed to prevent widespread famine.

Infrastructure Wiped Out and GDP in Freefall

The numbers tell a grim story of collapse. In 2024, GDP plunged by 83%. Per capita GDP has plummeted to just $161, among the lowest globally. Local officials estimate that 90% of all sectors, including housing and vital infrastructure, have been destroyed, with total economic losses reaching $70 billion.

While Donald Trump's peace plan is on the table, its full implementation remains stalled. The path to recovery depends on reopening crossings for raw materials. Without these, the private sector—which once contributed over 52% of employment—cannot restart.