UNCTAD Puts Gaza’s Recovery and Reconstruction Needs at 71.5 Billion Dollars
Gaza’s recovery and reconstruction needs are estimated at 71.5 billion dollars, UN Trade and Development (UNCTAD) said in its annual report on the Palestinian economy, presented on 24 September. An estimated 92 percent of Gaza’s economic establishments have been damaged or destroyed since October 2023.
An economy below its 2022 size
Palestinian GDP grew 4.3 percent in 2025 but remained 20 percent below its 2022 level. Hundreds of thousands of jobs have been lost since October 2023, erasing an estimated 2.8 billion dollars in cumulative labour income. Gaza’s real GDP grew 34.2 percent in 2025 after contracting 83 percent in 2024, a statistical rebound from a sharply reduced base. Its GDP per capita stood at 212 dollars, 17 percent of its 2022 level, and unemployment reached 78 percent. Gaza’s share of Palestinian GDP fell from 17.4 percent before October 2023 to less than 4 percent in 2025.
| Measure | Figure |
|---|---|
| Gaza recovery and reconstruction needs | 71.5 billion dollars |
| Physical infrastructure damage in Gaza | 35.2 billion dollars |
| Economic and social losses in Gaza | 22.7 billion dollars |
| Palestinian GDP growth, 2025 | 4.3% |
| Gaza GDP per capita, 2025 | 212 dollars |
| Gaza unemployment, latest reported | 78% |
UN Trade and Development, September 2026.
On our calculation, physical infrastructure damage alone accounts for 49 percent of the 71.5 billion dollar needs estimate.
Fiscal and banking strain
Cumulative deductions and withheld revenues between January 2019 and March 2026 exceeded an estimated 3.67 billion dollars, equivalent to 83 percent of total Palestinian net revenue in 2025, the report said. Health related arrears reached 1.1 billion dollars by late 2025. Including lending secured against government salaries, the banking system’s exposure to the public sector has reached 5.3 billion dollars, or 42 percent of all bank lending, and the report warns that constraints on Palestinian banks could disrupt financing for imports of fuel, medicines and food.
Why it matters: On our reading, the report links fiscal pressure directly to financial sector risk: public sector exposure has reached 42 percent of total bank lending, while cumulative deductions and withheld revenues through March 2026 were equivalent to 83 percent of Palestinian net revenue in 2025. That helps explain why its immediate priorities pair reconstruction support with revenue transfers and safeguards for the banking system.
Outlook: The report sets three immediate priorities: transferring withheld Palestinian revenues, safeguarding the banking system and aligning reconstruction support with the documented scale of damage. It says the 71.5 billion dollar figure may rise if further damage is recorded.
Sources: UN Trade and Development.
