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Markets Under Fire - An analysis of the local economy, structural setbacks, and adaptation strategies in Gaza (July 2025)

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Save the Children, Mercy Corps, and Catholic Relief Services conducted the Phase II Joint Market Assessment conducted across Gaza. Building on the initial rapid assessment from August–September 2024, this second phase – also led by Save the Children- provides a deeper understanding of Gaza’s market dynamics, including consumer access, trader behavior, and local production capacity. As three of the main cash actors in Gaza, our agencies worked in close partnership to address critical information gaps, combining quantitative data with qualitative insights and field observations.

This assessment explores how market systems are functioning under pressure, how livelihoods are adapting, and how consumers, traders, and producers are navigating constraints. It also offers actionable recommendations for humanitarian actors to design and implement effective cash and market-based interventions in Gaza.

The report was jointly prepared by the operational and technical teams of Save the Children (SC), Catholic Relief Services (CRS), and Mercy Corps (MC), with SC leading coordination, tool development, analysis and report drafting. Data collection was carried out by SC, CRS, and MC program teams, with precious support from SC’s local partners—Bayader and Save Youth Future Society—who supported organizing Focus Group Discussions. The review, and proofreading were conducted collaboratively by all three organizations. We are sincerely grateful to the households, male and female business owners, farmers, traders, and market actors who participated in this effort and generously shared their experiences and insights. We also thank the experts, institutions, and peer organizations whose knowledge and feedback helped enrich this assessment. Above all, we extend our deepest appreciation to the affected communities for sharing their challenges and perspectives.

While the context in Gaza remains fluid and a potential ceasefire or entry of goods may supply the entry of life saving items, we believe the analysis will remain valid and relevant. The challenges identified are structural in nature, and any goods prioritized for entry are unlikely to address the production gaps. We do not anticipate significant changes to market functionality in the short term.

Objectives of the assessment include

  • Updating the previous cash feasibility analysis through a value chain lens (producer–trader–consumer).
  • Assessing the potential for market-based interventions to support essential goods and services supply chains.
  • Identifying opportunities to promote food production and income-generating activities.

Methodology highlights

  • 1,174 household surveys on the phone conducted by Save the Children
  • 9 market observations in seven marketplaces across Deir al-Balah, Khan Younis, and Gaza City conducted by Save the Children, CRS and Mercy Corps
  • 138 market price records and 138 interviews with market actors across Deir al-Balah, Khan Younis, and Gaza City conducted by Save the Children, CRS and Mercy Corps
  • 10 Focus Group Discussions with farmers, entrepreneurs, seed banks, home-based producers, transporters, and communication service providers conducted by Save the Children in Deir al Balah and Khan Younis
  • 10 Key Informant Interviews with experts and institutions conducted by Save the Children, CRS and Mercy Corps online.