Economi

Gaza Infrastructure and Economy Devastated After Three Years

October 7, 2026 2 min read 0 comments

Three years of sustained military operations following the October 7, 2023 Hamas attack have severely damaged the Gaza Strip, killing more than 74,245 Palestinians and destroying essential public infrastructure, according to local officials and global agencies. Data from Gaza’s Ministry of Health indicates that 1,462 Palestinians have died since a ceasefire was announced in October 2025, as military actions and attacks continue throughout the region.

Displacement and Humanitarian Crises

United Nations assessments conducted in September revealed that 94 percent of Gaza’s population required urgent shelter assistance, with 65 percent living in tents or temporary structures due to repeated forced displacements. Families continue to face severe hardships, lacking adequate bedding, lighting, and sanitation facilities.

Basic utility access has dropped sharply across the enclave. In August, 91 percent of households faced moderate-to-high water insecurity, while the central power grid remains completely non-functional. Municipal services, including solid waste management and sewage pumping, are severely paralyzed by extensive equipment damage and chronic fuel shortages.

Economic Collapse and Unemployment

Economic output has experienced a near-total collapse, according to figures released by the UN Conference on Trade and Development (UNCTAD). The agency reported that 92 percent of Gaza’s economic establishments were damaged or destroyed by September, driving unemployment up to 78 percent.

Additionally, the 2025 GDP per capita dropped to $212, representing roughly 17 percent of its 2022 levels. Agriculture and industry sectors are operating at a tiny fraction of their pre-war capacities, while consumer prices remain approximately 200 percent above pre-conflict levels.

Education and Healthcare Systems Under Strain

The education sector has faced unprecedented disruption, with UNICEF reporting that nearly 98 percent of schools have been damaged or destroyed. Approximately 700,000 children aged 4 to 17 have missed nearly three consecutive years of consistent in-person education, leading to widespread learning gaps.

Healthcare infrastructure has similarly been pushed to the brink. According to the World Health Organization, all 36 of Gaza’s hospitals have sustained damage, with only 19 partially functioning. Severe shortages of medicines, diagnostic supplies, and fuel continue to threaten vulnerable patients, including those requiring dialysis and cancer treatment.

Amjad Fazal

Author at this publication.

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