UN report says Gaza needs $71.5 bn for recovery amid severe economic crisis

UNCTAD assessment of Gaza’s recovery needs

The United Nations Conference on Trade and Development released a report at its 73rd session stating that the estimated cost to rebuild Gaza’s economy and infrastructure has reached $71.5 bn. The report describes the situation as the world’s most severe economic crisis on record and notes that the figure is likely to increase as damage assessments continue.

Scope of damage and economic impact

According to the UN body, Israel’s military operations since October 2023 have damaged or destroyed 92% of Gaza’s economic establishments. Unemployment among the working-age population is reported at over 90%, and Gaza’s GDP per capita fell to $212 last year, an 83% decline from 2022. A joint assessment by the World Bank, EU and UN placed physical infrastructure damage at $35.2 bn and economic and social losses at $22.7 bn. Housing accounts for the largest share of reconstruction needs; more than half of hospitals and clinics remain non-functional, and less than 1.5% of cropland is accessible.

Financial constraints and priorities

The report calls for large-scale international financial and technical assistance to rebuild agriculture, industry, construction, energy and technology sectors. It also highlights the withholding of Palestinian revenues by Israel under the Paris Protocol, amounting to $3.67 bn between 2019 and March 2026, and warns of systemic collapse in the Palestinian banking system. Immediate priorities identified include transferring withheld revenues, safeguarding the banking system, and aligning reconstruction support with the documented scale of damage.

Unverified aspects

The UNCTAD estimate remains subject to revision as further damage assessments are conducted, and the exact timeline for releasing withheld funds has not been confirmed.