Gaza’s collapsed economy forces families into survival businesses


GAZA, (PIC)

In the war-ravaged streets of Gaza, work is no longer a choice; it is a necessity for survival. As jobs disappear, salaries go unpaid, and income sources vanish, many residents are turning to small, often rudimentary projects as a last resort to secure basic needs in what has become a daily struggle.

Economic collapse and shocking figures

Gaza is facing an unprecedented economic collapse. The war has destroyed around 85 percent of economic facilities and infrastructure, while unemployment has surged beyond 80 percent.

Gross domestic product has sharply contracted, and the economy has effectively become a subsistence system dependent almost entirely on humanitarian aid, with near-total paralysis in production, agriculture, and key sectors.

According to United Nations data, Gaza’s economy now operates at just 13 percent of its 2022 level, with nearly the entire population living below the poverty line.

Agricultural lands have been razed, wells and irrigation networks destroyed, leading to the collapse of local food production. Residents now rely almost entirely on aid amid widespread food insecurity.

Observers say Gaza’s economy has shifted from chronic fragility to total devastation, leaving people living under catastrophic conditions as markets stall and the foundations of daily life collapse. This reality has pushed thousands of families to search for alternatives, no matter how basic or unstable.

Home kitchen project

In one Gaza neighborhood, Umm Mohammed sits by a small stove preparing homemade meals to sell to neighbors.

“I used to depend on my husband’s salary, but he lost his job at the start of the war,” she said. “Now I cook at home and sell meals. The income is small, but it keeps us from going hungry or asking others for help.”

Her project requires only simple tools, yet reflects a broader trend, as homes, and even tents, have been transformed into small-scale kitchens amid the collapse of the formal economy.

“I cook for events: I make pastries and traditional dishes, and sometimes take custom orders. What matters is having something to spend on the family’s basic needs without having to ask for help,” she added.

Recycling rubble for survival

Ahmed, 32, has taken a different path. He launched a small business recycling wood and metal salvaged from destroyed buildings, repurposing them into items he can sell.

“There are no jobs, and life has become very difficult. I needed a source of income, so I started collecting usable materials from the rubble and recycling them,” he said. “I sell simple items like tables or doors.”

Despite the dangers and difficulty of the work, Ahmed sees opportunity. With most people unable to afford new furniture or supplies, demand has shifted to cheaper, improvised alternatives.

“This was not my job. Before the war, I worked in construction, finishing apartments and buildings,” he said. “But the war left us unemployed, and we spent all our savings. Now we work day by day just to secure food.”

An economy fighting to survive

These small-scale efforts reflect a broader transformation toward a survival economy built on reuse and forced innovation.

With industrial activity in Gaza declining by as much as 94 percent, small businesses have become the backbone of an expanding informal economy.

However, experts say this system faces major challenges, including lack of funding, difficulty importing raw materials, instability, and extremely weak purchasing power among residents.

Despite these obstacles, such initiatives demonstrate remarkable resilience. Still, economists warn that these solutions, while vital, cannot replace a functioning economy.

As restrictions persist and economic activity continues to decline, these projects remain little more than temporary coping mechanisms in the face of a deep structural crisis.

For many, small businesses are no longer just individual initiatives but a collective means of survival. Whether through a home stove, a street stall, or a workshop among the rubble, Gazans are writing daily stories of resilience in an economy that has nearly disappeared.

Published: Modified: Back to Voices