Gaza is grappling with an unprecedented economic crisis as it struggles to recover from the devastating impacts of a prolonged conflict. With unemployment rates soaring to an estimated 80% and the cost of basic goods rising sharply, many residents are left desperate for employment and the cash needed to survive. Despite a recent ceasefire and an influx of humanitarian aid, the situation remains dire for the majority of the population.
A Daily Struggle for Survival
Each morning, 23-year-old Mansour Mohammad Bakr embarks on a journey from his modest rented room in Gaza City, where he lives with his pregnant wife and two young daughters. Once a fisherman alongside his family, Bakr now finds himself among the many who have lost their livelihoods to the ongoing conflict. His family’s fishing equipment was destroyed, and his brothers lost their lives in the violence.
“Money is the main means of survival in Gaza… without it, a person cannot do anything,” Bakr asserts, highlighting the grim reality faced by countless families. Even as humanitarian organisations have increased their support following a ceasefire in October, he finds that aid is insufficient to meet basic living costs.
Humanitarian Aid: A Band-Aid Solution
In January, the United Nations and various NGOs reached around 1.6 million people with general food assistance, while World Central Kitchen provided one million hot meals daily. However, this support has not alleviated the pressing need for cash. Aid workers report an increase in the availability of fresh produce and other goods, but prices have skyrocketed.
Kate Charlton, a medical coordinator for Médecins Sans Frontières in Gaza City, notes that while supplies have improved, affordability remains a significant barrier. “There has been a huge increase in commercial supplies… but it is all very expensive,” she explains.
Mohammed al-Far, a 55-year-old former trader, echoes this sentiment. Living in a crowded coastal area, he and his family receive minimal food aid, relying on one meal a day consisting largely of rice and lentils. “Life requires cash to go on,” he laments, stressing that expenses for even the most basic services and goods are out of reach without money.
A Collapsing Economy
The broader economic picture in Gaza is alarming. The UN reports that the current unemployment rate stands at a staggering 80%, with the local economy now operating at just 13% of its pre-war capacity. Pedro Manuel Moreno, deputy secretary-general of the UN’s trade and development agency, remarked that the recent conflict has obliterated decades of progress, marking Gaza’s economic collapse as one of the most severe on record.
In 2024, GDP per capita in Gaza plummeted to a mere $161 (£118) annually, positioning it among the lowest globally. Critical infrastructure including sanitation, healthcare, and transportation has been devastated, further complicating recovery efforts.
Bakr dreams of returning to the sea and reclaiming his former profession but is constrained by both the destroyed fishing industry and the limitations imposed by Israeli regulations. “My work as a fisher was passed down to us from our grandfathers… I have been searching for work everywhere I can,” he says, reflecting the frustration felt by many.
The Reality of Continued Violence
Despite the ceasefire, violence has not abated. Reports indicate that January saw an increase in Israeli attacks, resulting in the deaths of hundreds more Palestinians since the truce began. The overall death toll has now surpassed 72,000, with most casualties being civilians.
Bisan Mohammad, a recent graduate, faces the harsh realities of this ongoing turmoil. Following the loss of her husband during the early stages of the conflict, she struggles to support her daughter while living in a tent with her parents. “Everything needs money; even water, food, and bedding all require cash,” she states. The psychological toll of this situation is immense, leaving many feeling hopeless about the future.
Why it Matters
The current crisis in Gaza highlights the intersection of humanitarian need and economic collapse, revealing the fragile state of recovery post-conflict. As residents grapple with staggering unemployment and soaring prices, the international community faces pressure to provide meaningful assistance that goes beyond temporary aid. The implications of this crisis extend beyond Gaza, affecting regional stability and global humanitarian obligations. Without a sustainable economic framework and a commitment to rebuilding, the cycle of despair is likely to persist, leaving millions without a viable path to recovery.
