The United Nations has warned that reconstructing Gaza after Israel's military operations will cost more than $70bn (£53bn) and could take decades. A report by the UN Conference on Trade and Development (Unctad) described the situation as a “human-made abyss”, with the entire population of 2.3 million facing extreme poverty.
Gaza's economy contracted by 87% during 2023–2024, leaving GDP per capita at just $161, among the lowest globally. The report said “violence, accelerated settlement expansion and restrictions on worker mobility” had also devastated the West Bank economy, with Palestinian government revenues slashed by withheld fiscal transfers.
Humanitarian conditions remain dire. The World Food Programme reported that most households cannot afford basic food, diets lack meat and vegetables, and many families burn plastic for cooking due to gas shortages. Over 69,000 Palestinians have been killed since October 2023, with thousands more bodies under rubble.
A fragile US-brokered ceasefire between Israel and Hamas has held since October, but violations continue. Hamas has released most living hostages in exchange for nearly 2,000 Palestinian prisoners and hundreds of bodies. The UN Security Council endorsed a 20-point plan for an interim Palestinian government overseen by an international board and security force.
The report noted that even with substantial aid, recovery to pre-war GDP levels could take decades, as decades of development progress have been erased in less than two years.
