Business · Malaysia Bureau
UN flags Gaza's unprecedented economic collapse amid soaring prices
The United Nations has warned that Gaza faces the world's most severe economic crisis on record, with daily per capita income plummeting to just US$0.58. The territory's cost of living has surged 274 percent since 2022, creating a humanitarian emergency.
LSN Malaysia ·
The Gaza Strip is experiencing an economic catastrophe unparalleled in modern times, according to a United Nations assessment that paints a dire picture of the territory's financial situation. Daily per capita gross domestic product has collapsed to just US$0.58, marking an unprecedented contraction that far exceeds economic crises documented elsewhere globally.
The humanitarian toll is compounded by severe price inflation, with goods and services now costing 274 percent more than they did in 2022. This dramatic surge in the cost of living has devastated purchasing power across the population, leaving residents unable to afford basic necessities including food, medicine, and utilities.
The combined impact of economic contraction and hyperinflation has created cascading humanitarian challenges throughout Gaza. Widespread unemployment, coupled with the deteriorating value of wages and savings, has left the majority of the territory's population dependent on humanitarian assistance for survival.
The UN's assessment underscores the severity of conditions in Gaza, where years of conflict and blockade have systematically dismantled economic infrastructure. International observers warn that without urgent intervention, the economic crisis will deepen further, with potentially catastrophic consequences for an already vulnerable civilian population.