Gaza reconstruction needs have reached an estimated $71.5 billion as UNCTAD reports widespread destruction, unemployment and severe economic strain.
GENEVA: Gaza reconstruction needs have reached an estimated $71.5 billion as the territory confronts what UN Trade and Development describes as the world’s most severe economic crisis on record. The assessment, released on September 24, 2026, says decades of development gains have been erased while Palestinian public finances and the banking system face mounting pressure.
UNCTAD’s latest report estimates that 92 per cent of Gaza’s economic establishments have been damaged or destroyed since October 2023.
Hundreds of thousands of jobs have been lost across the Occupied Palestinian Territory over the same period.
How severe is Gaza’s economic collapse?
Gaza’s real GDP grew 34.2 per cent in 2025 after contracting 83 per cent in 2024, but UNCTAD stresses that the increase represented a statistical rebound from an exceptionally low base.
GDP per capita stood at just $212 in 2025, equivalent to about $0.58 per person per day in GDP terms and only 17 per cent of its 2022 level. Unemployment reached 78 per cent, while more than 90 per cent of the working-age population was not employed.
Where will the $71.5 billion be needed?
Gaza reconstruction needs include rebuilding homes, public infrastructure, healthcare facilities and productive sectors.
A joint damage and needs assessment by the World Bank, European Union and United Nations puts physical infrastructure damage at $35.2 billion and economic and social losses at $22.7 billion. The overall recovery and reconstruction requirement is estimated separately at $71.5 billion, and UNCTAD warns that the figure could increase if further damage is recorded.
Housing represents the largest category of both damage and reconstruction requirements. More than half of hospitals and primary healthcare clinics are non-functional, while less than 1.5 per cent of Gaza’s cropland remained accessible and undamaged, according to the report.
Palestinian finances face growing pressure
The economic strain extends beyond Gaza. UNCTAD says Palestinian GDP grew 4.3 per cent in 2025 but remained 20 per cent below its 2022 level.
The report also estimates that deductions and withheld Palestinian revenues between January 2019 and March 2026 exceeded $3.67 billion. Banking exposure to the public sector has reached $5.3 billion, raising wider financial stability concerns.
What does UNCTAD say is needed now?
UNCTAD identifies the transfer of withheld Palestinian revenues, protection of the banking system and reconstruction assistance matching the documented scale of destruction as immediate priorities. It says recovery will require significant international financial and technical assistance.
Impact to expect
The scale of the Gaza reconstruction needs indicates that recovery will require sustained international funding and years of rebuilding across housing, healthcare, agriculture, industry, energy and other essential infrastructure.
