**Gaza's Recovery Needs Estimated at $71.5 Billion Amid Severe Economic Crisis, UN Reports**
**Date: September 24, 2026**
The United Nations Conference on Trade and Development (UNCTAD) has released a report estimating that Gaza's recovery and reconstruction needs have reached approximately $71.5 billion, a figure that is expected to rise as the situation evolves. The report highlights the dire economic conditions in Gaza, which have been exacerbated by ongoing conflict and longstanding structural issues stemming from decades of occupation.
Since the onset of hostilities in October 2023, nearly 1.9 million people—approximately 90 percent of Gaza's population—have been displaced, according to the UN. The report characterizes the current economic crisis in Gaza as the "most severe on record," detailing the extensive damage inflicted by military operations that have reportedly affected 92 percent of economic establishments in the region.
The report indicates that unemployment rates have skyrocketed, with over 90 percent of Gaza's working-age population now without jobs. This dramatic rise in unemployment has resulted in the loss of hundreds of thousands of jobs across the Occupied Palestinian Territories, leading to a cumulative loss of $2.8 billion in labor income. The economic toll has been staggering, with Gaza's GDP per capita plummeting to just $212 last year, marking an 83 percent decrease from the previous year.
A separate assessment conducted by the World Bank, European Union, and UN placed the physical damage to Gaza's infrastructure at $35.2 billion, while economic and social losses were estimated at $22.7 billion as of early 2026. The report emphasizes that housing constitutes the largest share of the damage and reconstruction needs, with more than half of hospitals and clinics rendered non-functional. Additionally, less than 1.5 percent of cropland remains accessible and undamaged, further complicating recovery efforts.
The UNCTAD report calls for urgent, large-scale international financial and technical assistance to rebuild critical sectors such as agriculture, industry, construction, energy, and technology. It also stresses the importance of transferring withheld Palestinian revenues, safeguarding the banking system, and aligning reconstruction support with the documented scale of damage as immediate priorities.
The financial situation in the West Bank is also precarious, with Israel withholding clearance revenue transfers—funds collected on behalf of the Palestinian government—since May 2025. Cumulative deductions and withheld revenues from 2019 to March 2026 have exceeded $3.67 billion, which is equivalent to 83 percent of total Palestinian net revenue in 2025. The Palestinian Authority is facing a budget deficit that reached 13 percent of GDP in 2025, putting immense pressure on essential services. Health-related arrears have accumulated to $1.1 billion, jeopardizing the operations of hospitals and pharmaceutical suppliers, while schools in the West Bank have been forced to limit in-person instruction to just three days a week due to resource shortages.
Public debt in the Palestinian territories has surged to $4.8 billion, with the banking sector's exposure to the public sector amounting to $5.3 billion, or 42 percent of all bank lending. The report warns that a systemic collapse of the financial system is increasingly likely, with banks potentially unable to sustain essential trade flows, including fuel, water, and medicine. Stabilizing the financial system and developing a sustainable cross-border payments framework have been identified as urgent priorities.
The report also highlights the ongoing challenges posed by settlement expansion, which has led to reduced Palestinian access to land. Since 2023, 38 communities have been emptied, and displacement figures for the first quarter of 2026 have already surpassed those of the entire previous year.
As the situation in Gaza continues to deteriorate, the international community faces pressing calls to respond to the humanitarian crisis and support recovery efforts that are critical for the region's stability and future.