The United Nations Conference on Trade and Development released a report on the 24th stating that the Palestinian economy and public finances are under severe strain, and the funds required for the recovery and reconstruction of the Gaza Strip are estimated at US$71.5 billion.

People walk through the ruins in the Shuga Aiyeh neighborhood of Gaza City on July 11, 2024. 

The report points out that Israel’s prolonged occupation is hindering Palestine’s economic development. Since the outbreak of the latest round of the Israeli–Palestinian conflict in October 2023, the economic costs of the occupation have risen sharply.

After a significant contraction in 2024, Palestine’s gross domestic product (GDP) is projected to grow by 4.3% in 2025, but will still remain 20% below its 2022 level. Since October 2023, hundreds of thousands of jobs have been lost in the Occupied Palestinian Territory, with cumulative labor income losses estimated at US$2.8 billion. The Palestinian government’s financial situation has deteriorated sharply. Revenues collected by Israel on behalf of the Palestinian government are intermittently transferred and deducted; from May 2025 to mid -2026, all liquidation revenues due to be transferred to the Palestinian government are withheld.

Since October 2023, 92% of economic entities in the Gaza Strip have been damaged or destroyed. In 2025, Gaza's per capita GDP will be US $212, equivalent to about US $0.58 per capita per day, only 17% of the 2022 level; the unemployment rate is as high as 78%, and more than 90% of the working-age population are unemployed.

The report also cites an assessment conducted by the World Bank, the European Union, and the United Nations, which indicates that by early 2026, Gaza’s physical infrastructure losses amounted to US$35.2 billion, while economic and social losses totaled US$22.7 billion. Additionally, it is estimated that the reconstruction and recovery of Gaza will require US$71.5 billion, a figure that could rise further.

According to another earlier United Nations report, the level of human development in Gaza has regressed by 77 years due to the conflict. More than 370,000 homes have been destroyed or damaged, over half of the hospitals are non-operational, nearly all schools have been damaged, approximately 1.9 million people have been displaced, and the total volume of rubble amounts to 61 million tons.