UN Report Estimates Gaza's Recovery Needs at $71.5 Billion Amid Economic Crisis

A report from the United Nations Conference on Trade and Development (UNCTAD) estimates that Gaza's recovery and reconstruction needs have reached approximately $71.5 billion, with expectations for this figure to rise. The report, presented during UNCTAD's 73rd session, describes Gaza's economy as experiencing the world's "most severe crisis on record." It attributes this crisis to 59 years of Israeli occupation, which has created structural constraints that hinder economic productivity, increase poverty, and lead to reliance on aid. Since October 2023, following the onset of military operations by Israel, the report states that the consequences of the occupation have intensified. It notes that 92 percent of economic establishments in Gaza have been damaged or destroyed since the conflict began, resulting in over 90 percent unemployment among the working-age population. The report also highlights the loss of hundreds of thousands of jobs across the Occupied Palestinian Territories, with a cumulative loss of $2.8 billion in labor income. Gaza's GDP per capita was reported at $212 last year, reflecting an 83 percent decrease since 2022. An assessment by the World Bank, EU, and UN estimates physical infrastructure damage in Gaza at $35.2 billion and economic and social losses at $22.7 billion as of early 2026. The report indicates that housing constitutes the largest share of the damage, with more than half of hospitals and clinics non-functional and less than 1.5 percent of cropland remaining accessible. It calls for significant international financial and technical assistance to rebuild various sectors, including agriculture, industry, and energy. The report also mentions that Israel has withheld revenue transfers collected on behalf of the Palestinian Government, leading to a cumulative loss exceeding $3.67 billion since 2019. The Palestinian Authority's budget deficit for 2025 is projected at 13 percent of GDP, straining essential services, with health-related arrears reaching $1.1 billion. Public debt has risen to $4.8 billion, and the banking sector's exposure to the public sector stands at $5.3 billion. The report warns of a potential systemic collapse of the financial system, emphasizing the urgent need for stabilizing trade flows and developing a sustainable payments framework. Additionally, it documents reduced Palestinian access to land due to settlement expansion, with significant displacement reported since 2023.