Palestinians in the Gaza Strip continue to endure a devastating humanitarian and economic crisis, with widespread destruction of homes, businesses, agricultural land and essential infrastructure leaving hundreds of thousands dependent on humanitarian assistance and depriving the territory of much of its ability to sustain normal civilian life.

Ramiz Alakbarov, acting UN Special Coordinator for the Middle East Peace Process and UN Humanitarian Coordinator for the Occupied Palestinian Territory, said humanitarian conditions remained extremely difficult despite some progress in allowing food supplies into Gaza.

Water, sanitation, shelter and waste management remain major challenges, Alakbarov said, while the collapse of the labor market has made Palestinians increasingly dependent on humanitarian assistance and cash transfers.

The United Nations continues to provide assistance in water and sanitation, healthcare, debris removal and education and is also supporting Palestinian farmers, he said.

More than 300,000 children are receiving education in temporary learning spaces, while only a very small proportion of Gaza's agricultural land remains accessible and usable, according to Alakbarov.

He said the UN Relief and Works Agency for Palestine Refugees (UNRWA) continues to operate in Gaza despite restrictions on its work. More than 8,000 people remain missing beneath the rubble of destroyed buildings across the Strip, he added.

For Palestinians who have endured prolonged displacement, the prospect of another winter in tents remains deeply distressing.

Alakbarov said Gaza residents want to return to schools and workplaces, rebuild their communities and restore basic services, including water, sanitation and electricity.

Gaza's economy devastated

The humanitarian catastrophe has been accompanied by the destruction of much of Gaza's productive economy.

UN Conference on Trade and Development (UNCTAD) data show that around 92% of economic establishments in Gaza have been damaged or destroyed since October 2023, wiping out businesses and livelihoods and severely undermining the territory's ability to generate employment and income.

The economic collapse is reflected in GDP per capita, which fell to about $212 in 2025, just 17% of its 2022 level, according to UNCTAD.

The figure measures economic output per person rather than individual income and illustrates the extraordinary contraction of Gaza's economy.

Agricultural and industrial output each fell by around 94%, while construction contracted by 99% compared with 2022.

The destruction of agriculture has been particularly severe. Mutasim Elagraa, coordinator of UNCTAD's Assistance to the Palestinian People Unit, said less than 1.5% of Gaza's agricultural land remained accessible, intact and undamaged.

Agriculture's contribution to Palestinian GDP has fallen from 17.4% before the war to less than 4%, he said.

For Palestinian farmers, the destruction represents not only the loss of land and crops but also the loss of one of the territory's traditional sources of livelihood.

Jobs disappear as prices soar

The destruction has also devastated Gaza's labor market.

Unemployment has reached around 78%, while more than 90% of the working-age population is now without employment, according to Elagraa.

Hundreds of thousands of jobs have disappeared since the beginning of the war, resulting in an estimated $2.8 billion decline in cumulative labor income across the Palestinian territories.

At the same time, families have faced a dramatic rise in the cost of living.

UNCTAD said Gaza's overall price level in 2025 was 274% higher than in 2022. The price of some basic goods has increased even more sharply, with potatoes costing more than 20 times their pre-war price.

The combination of destroyed livelihoods, unemployment and soaring prices has left Palestinian families facing a devastating economic squeeze while humanitarian needs continue to grow.

Reconstruction on an enormous scale

The destruction has created reconstruction needs far beyond the replacement of individual homes and buildings.

UNCTAD estimates Gaza's recovery and reconstruction requirements at approximately $71.5 billion. A joint assessment by the World Bank, European Union and United Nations estimated direct physical damage at about $35.2 billion, while broader economic and social losses reached approximately $22.7 billion.

Pedro Manuel Moreno, UNCTAD's acting secretary-general, warned that economic recovery would be essential to any lasting political settlement.

"Peace cannot be built on a collapsed economy," Moreno said.

UNCTAD has called for the release of Palestinian clearance revenues withheld by Israel, saying their cumulative value has exceeded $3.67 billion since 2019.

The agency has also urged measures to protect the Palestinian banking system and called for international assistance to prioritize the reconstruction of productive sectors, including agriculture, industry, energy and technology.

West Bank under mounting pressure

The crisis extends beyond Gaza.

Alakbarov described conditions in the occupied West Bank as "extremely tense," citing settlement expansion, settler violence, movement restrictions and growing economic pressure on Palestinians.

The UN continues to provide grants, cash assistance and legal support to Palestinian families and communities affected by the deteriorating conditions.

On the political track, Alakbarov said there was "no alternative to the two-state solution" and called for a comprehensive approach to the Palestinian issue, efforts to rebuild trust, an end to incitement to violence and support for the unity of Palestinian institutions.

For Palestinians in Gaza, however, recovery will require far more than rebuilding damaged structures. The destruction has stripped communities of homes, livelihoods, farms, businesses and essential services, leaving the territory facing the enormous task of rebuilding civilian life while humanitarian needs remain acute. (ILKHA)