PRINCIPLE

November 26, 2025

UN report: Gaza reconstruction will cost $70+ billion over decades after Israel's indiscriminate and disproportionate killings created "human-made abyss"

Gaza's economy collapsed to 1998 levels as Israel's indiscriminate bombing and 18-year blockade destroyed decades of development

The UN Conference on Trade and Development released a report Nov. 25, 2025, showing Gaza's economy contracted 87% since October 2023, with GDP per capita falling to $161 (1998 levels). About 174,500 structures (70% of buildings) were damaged by April 2025.

The UN, World Bank, and EU estimate reconstruction will cost $70 billion and take decades.

Israel has withheld $1.76 billion in tax revenues it collects on behalf of Palestinians since January 2019, using this control as political leverage. The 18-year blockade Israel imposed in 2007—controlling all land, sea, and air access—has caused $16.7 billion in economic losses.

Gaza's economy collapsed 87% between October 2023 and 2024, dropping GDP per capita to $161—levels last seen in 1998. The UN Conference on Trade and Development released this data Nov. 25, 2025. The report shows the steepest economic contraction on record globally. Gaza's GDP fell from $2.1 billion in 2022 to $362 million in 2024.

Israel controls every dollar flowing into Gaza through two mechanisms: a land, sea, and air blockade imposed June 2007, and control over Palestinian Authority tax revenues under the 1994 Paris Protocol. Israel collects about 75% of PA revenue—customs duties and VAT on goods entering Palestinian territories. Israel withheld $1.76 billion in PA tax revenues from January 2019 to April 2025. Israel has used this power six times since the 1990s to pressure Palestinian leadership.

The blockade reduced monthly truck shipments from 10,400 in 2005 to 408 in 2015—a 96% drop. Israel bans virtually all exports from Gaza, restricts construction materials as 'dual-use' items, and controls all border crossings. Before the blockade, Gaza exported agricultural products, textiles, and furniture. After 2007, exports dropped to nearly zero. The World Bank identifies the export ban as the main impediment to economic development.

The blockade caused $16.7 billion in economic losses from 2007-2018 before the 2023 war started, according to UNCTAD. Unemployment jumped from 35% in 2006 to 52% in 2018, then to 80%+ by 2024. Poverty rates doubled from 39% in 2007 to 55% in 2017. Hamas collects internal taxes on goods after Israeli inspection, but Israel controls the borders and PA revenues.

About 174,500 structures—70% of all buildings in Gaza—were damaged by April 2025 according to UN satellite analysis. The UN, World Bank, and European Union estimate reconstruction will cost $70 billion. Initial estimates in early 2025 put the cost at $50 billion. The number grew to $70 billion as assessments revealed full damage: 90% of homes damaged or destroyed, 68% of agricultural land degraded, water and sewage systems collapsed.

Clearing 42 million tons of rubble could take 22 years at current capacity, according to the UN. The UN Mine Action Service estimates 7,500 tons of unexploded ordnance remain scattered across Gaza. Clearing this ordinance could take 10-14 years. Reconstruction faces two bottlenecks: Israel's blockade restrictions on construction materials, and the physical danger of unexploded bombs destabilizing ground under buildings.

Pedro Manuel Moreno, UNCTAD Deputy Secretary-General, said the report documents how Israeli military operations and restrictions pushed occupied Palestinian territory into economic downturn now ranked among the 10 worst collapses recorded globally since 1960. Mutasim ElagraaMutasim Elagraa, senior UNCTAD economist, said extensive damage to infrastructure reversed decades of socioeconomic progress.

International donors face a repeat cycle: they've already paid billions to rebuild Gaza after previous Israeli military operations in 2008-2009, 2012, 2014, and 2021. Each time, donated infrastructure was destroyed in the next round of fighting. Qatar alone provided over $1 billion between 2014-2019. The EU and Germany have been major long-term donors. Donors now question funding reconstruction without guarantees Israel won't destroy it again.

🌍Foreign Policy💰Economy🌪️Disaster Management

People, bills, and sources

What You Can Do

1

civic action

Call the Senate Foreign Relations Committee at 202-224-4651 to demand hearings on Gaza reconstruction funding conditions

Push senators to require Israel lift blockade restrictions and address long-term reconstruction conditions before approving new funding

www.foreign.senate.gov

Hi, I'm calling as a constituent to demand that the Senate Foreign Relations Committee hold public hearings on Gaza reconstruction funding.

Key points to mention:

  • UN trade experts at UNCTAD estimate that rebuilding Gaza after the 2023 war will cost more than $70 billion and take decades of work.
  • UNCTAD also found that Israel's blockade and repeated military operations caused about $16.7 billion in lost GDP between 2007 and 2018 alone.
  • Past reconstruction rounds after the 2008, 2012, 2014, and 2021 conflicts were destroyed in later fighting while the blockade still restricted construction materials and exports.

How this impacts people:

  • Ordinary Palestinians are trapped in a cycle where homes, schools, and hospitals are rebuilt with international money and then destroyed again.
  • Donor governments spend billions while basic economic life in Gaza remains blocked by restrictions on movement, trade, and construction.

Questions to ask:

  • Will the committee require Israel to lift or significantly ease blockade restrictions on construction materials and exports before approving new reconstruction funds?
  • How will the committee make sure that rebuilt homes, water systems, and power plants are not destroyed again in a few years?
  • What conditions will the committee place on U.S. funding so that it supports long-term economic recovery instead of another short-term patch?

Specific request: I want the committee to condition any new U.S. reconstruction funding for Gaza on concrete steps to lift blockade restrictions and protect rebuilt infrastructure from future destruction.

Thank you for your time.

2

civic action

Contact House Appropriations Committee staff at 202-225-2771 about Gaza reconstruction funding oversight

Demand transparency on how U.S. reconstruction funds are allocated and whether they address blockade restrictions and long-term conditions

appropriations.house.gov/contact

Hi, I'm calling about how U.S. reconstruction funding for Gaza is handled in the appropriations process.

Key points to mention:

  • UNCTAD estimates that rebuilding Gaza after the 2023 war will cost more than $70 billion and take decades.
  • Past reconstruction rounds paid for by international donors were destroyed in later fighting while the blockade stayed in place.
  • U.S. appropriations decisions can either reinforce that cycle or attach conditions that support long-term recovery.

Questions to ask:

  • Will your office push for report language or conditions that link U.S. reconstruction funds to easing blockade restrictions on building materials and exports?
  • How will you track whether U.S. money is helping ordinary families rebuild permanent housing and economic life instead of temporary fixes?

Specific request: Please make sure future appropriations bills include strong oversight and conditions so U.S. reconstruction funding in Gaza supports lasting recovery, not another round of temporary rebuilding.

Thank you for your work on the committee.

3

understanding

Read recent UNCTAD reports on Gaza's economic collapse and reconstruction costs

Understand the data showing how years of blockade and repeated military operations created deep economic dependence and massive reconstruction needs

unctad.org/topic/palestine
4

civic action

Email your Senators and House member to demand conditions on Gaza reconstruction funding

Send a detailed email to your federal representatives calling for conditions on reconstruction funding

Subject: Conditions on U.S. funding for Gaza reconstruction

Dear [Representative/Senator Name],

I'm writing as a constituent to urge you to support strict conditions on any new U.S. funding for Gaza reconstruction.

Key facts:

  • UN trade experts at UNCTAD estimate that rebuilding Gaza after the 2023 war will cost more than $70 billion and take decades.
  • UNCTAD also found that Israel's blockade and repeated military operations caused about $16.7 billion in lost GDP between 2007 and 2018 alone.
  • International donors already paid for reconstruction after the 2008, 2012, 2014, and 2021 conflicts, only to see much of that infrastructure destroyed again.

Impact on people and democracy:

  • Ordinary families in Gaza are trapped in a cycle where homes, schools, and hospitals are rebuilt with international money and then destroyed.
  • Donor governments keep spending billions without fixing the policies—like the blockade—that make long-term recovery impossible.

Questions I want you to answer:

  • Will you support conditions that require Israel to lift or significantly ease blockade restrictions on construction materials and exports before approving new reconstruction funds?
  • How will you make sure U.S. money rebuilds durable civilian infrastructure rather than temporary projects that will be destroyed again?

My request: Please push for hearings and conditions that link any new U.S. reconstruction funding in Gaza to ending policies that prevent long-term economic recovery.

Thank you for your attention to this issue.

How to find your representative:

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