UN Warns Gaza Reconstruction Could Cost Over $70 Billion Amid Economic Collapse
UN Warns Gaza Reconstruction Could Cost Over $70 Billion Amid Economic Collapse
………….
The United Nations has warned that Gaza faces a “human-made abyss” and that rebuilding the territory could cost more than $70 billion over several decades, The Guardian reported. A report by the UN Conference on Trade and Development (UNCTAD) highlighted that Israel’s military operations have “significantly undermined every pillar of survival” for Gaza’s 2.3 million residents, leaving the population in “extreme, multidimensional impoverishment.”
UNCTAD noted that Gaza’s economy contracted by 87% between 2023 and 2024, reducing GDP per capita to just $161, among the lowest in the world. The West Bank has also suffered from economic decline, attributed to violence, settlement expansion, and restrictions on worker mobility. The report added that withholding of fiscal transfers by Israel has limited the Palestinian Authority’s ability to provide essential services or invest in recovery, at a time when urgent rebuilding and crisis response are needed.
The steep economic downturn erased decades of development progress. By the end of 2024, Palestinian GDP fell to 2010 levels, and GDP per capita returned to 2003 levels, effectively reversing 22 years of growth. UNCTAD warned that even with substantial aid, restoring pre-October 2023 GDP levels could take decades.
The two-year conflict killed over 69,000 Palestinians. Since the US-brokered ceasefire in October 2025, at least 342 Palestinians and three Israeli soldiers have been killed, and hostages and remains exchanges have been ongoing.
Conditions in Gaza remain dire. The World Food Programme reported that most households cannot afford basic food, with diets limited to cereals, pulses, and small amounts of dairy and oil. Cooking fuel shortages have forced families to rely on alternative sources, such as burning plastic.
The UN Security Council has backed Donald Trump’s 20-point plan for Gaza, calling for an interim technocratic Palestinian government, international oversight, and a security force to facilitate reconstruction, though implementation challenges remain amid ongoing humanitarian and political pressures.
