Gaza Economy Collapses into 'Survival Mode,' Expert Warns

Gaza is experiencing its most severe and dangerous economic crisis in modern history, according to economist and international relations expert Louay Sakka. He stated that the situation has moved beyond suffering under a long-term blockade to a complete structural collapse of vital components.

Sakka cited international reports from 2026 indicating a "terrifying leap" in unemployment, exceeding 80%. Concurrently, the Gross Domestic Product (GDP) has shrunk by an unprecedented 83-84%, leading to a loss of over 92% of general production capacity. This has transformed Gaza into a "survival economy" entirely dependent on emergency aid.

The estimated total cost for reconstruction and economic recovery over the next decade is approximately $71.4 billion. Sakka emphasized that escaping this cycle requires an urgent developmental rescue plan, not just crisis management or temporary relief.

He specifically called for focusing $26.3 billion in the first 18 months on restoring infrastructure and essential services like water, energy, and health. Sakka suggested this funding should be channeled through unified international trust funds to ensure transparent and politically neutral disbursement.