UN estimates more than $53B for Gaza Strip’s recovery, reconstruction

“The report estimates the recovery and reconstruction needs in the short, medium and long term across the Gaza Strip at $53.142 billion. Of these, the near-term needs in the first three years are estimated to be around $20.568 billion,” said the report by UN Secretary-General Antonio Guterres.

Highlighting the dire economic and humanitarian toll of the conflict, the report noted that Gaza’s economy is projected to shrink 83% in 2024, with unemployment reaching 80%.

“In the Occupied Palestinian Territory, poverty is projected to have risen to 74.3% in 2024, up from 38.8% at the end of 2023,” added the report.

Guterres stressed that addressing immediate humanitarian needs is crucial. “In the immediate and short term, the scale of the humanitarian crisis will require a continued focus on delivering life-saving humanitarian assistance.”

Recalling the UN’s $6.6 billion humanitarian flash appeal on Dec. 11, 2024, the report said $3.6 billion from the appeal is allocated to address the most critical needs of 2.1 million Palestinians in Gaza.

“These short-term needs are focused on addressing acute humanitarian needs through the delivery of emergency supplies and the provision of critical services, including protection, until local services and markets are restored,” it added.

The report emphasized two key priorities remaining — ensuring stronger civilian protection and securing safe and unhindered access to aid.

“With a large majority of residential buildings damaged or destroyed, some 1.13 million people are in makeshift shelters or tents that do not provide adequate protection,” it noted, warning that health care services remain critically insufficient.

The report recalled the deaths of at least eight children in Gaza due to hypothermia in December and early January.

Guterres urged stronger international support to strengthen the Palestinian Authority’s institutions and prepare it to reassume full governance in Gaza.

“Political, institutional and economic reforms will also be needed, but they must be achievable and properly financed,” he stressed.

The UN chief also stressed that Gaza must remain an integral part of a Palestinian state, with no reductions in its territory and full political, economic and administrative unity with the occupied West Bank.