The United Nations Conference on Trade and Development (UNCTAD) estimated in a report issued on September 24, 2026, that Gaza's recovery and reconstruction needs would amount to about 71.5 billion dollars, after three years of war caused extensive damage to infrastructure and economic establishments and disrupted production, employment and trade.
Declining output and income
UNCTAD said Gaza's per capita gross domestic product stood at 212 dollars in 2025, equivalent to 17% of its level in 2022. The territory's contribution to Palestinian gross domestic product fell from 17.4% before October 2023 to less than 4% in 2025.
Productive sectors remained far below their 2022 output levels, with activity in both agriculture and industry falling by 94%, while construction activity plunged by 99%. The suspension of broad sectors coincided with shrinking household incomes and employment opportunities, as well as declining purchasing power.
Prices and supply chains
The war's impact extended to supply chains, the movement of goods and production inputs, limiting the ability of the remaining establishments to continue operating. The overall price level in Gaza in 2025 remained 274% above its 2022 level, according to UNCTAD, while shrinking incomes and employment opportunities deepened economic pressures on households.
Infrastructure damage
A joint assessment by the World Bank, the United Nations and the European Union estimated the physical damage to Gaza's infrastructure at about 35.2 billion dollars and the economic and social losses at about 22.7 billion dollars. The hardest-hit sectors included housing, health, education, trade and agriculture, while less than 1.5% of the territory's agricultural land remained both accessible and intact.
