Economic affairs specialist Ahmed Abu Qamar: Gaza’s economy before the war was already suffering from the blockade, unemployment and weak production, but it still had a market and operating production facilities

Economic affairs specialist Ahmed Abu Qamar:

▪Gaza’s economy before the war was already suffering from the blockade, unemployment and weak production, but it still had a market and operating production facilities, even if under very severe restrictions. After three years of the war of extermination, the nature of the crisis changed with the loss of a large part of the capacity for production, operation and income generation.

▪Before the war, trade accounted for about 56% of economic establishments, and about 45.5% of the workforce worked in it, with unemployment reaching 45% in the third quarter of 2023, while poverty exceeded 63%. After three years, 92% of economic establishments were destroyed or damaged, real GDP shrank by about 83% during 2024, and per capita GDP fell to $212 in 2025, or about 58 cents per day and only 17% of its 2022 level.

▪As for the labor market, unemployment rose from 45% before the war to about 80% in 2026, and in the productive sectors agricultural and industrial production fell by about 94% each, while construction activity declined 99% compared to 2022.

▪The problem was not limited to production. In September 2026, prices were about 207% higher than pre-October 2023 levels, while total consumption in Gaza fell 81% during 2025 compared with 2023. In food security, more than 1.2 million people, or 59% of the population, faced crisis or worse levels between April and June 2026, with the number expected to rise to more than 1.4 million, or 67%, by the end of this year.

▪For this reason, the comparison between Gaza before the war and after three years reveals a transformation deeper than a decline in output. We are talking about an economy that was working despite the blockade, moving to an economy that has lost a large part of its basic tools for generating income and job opportunities.