Gaza needs over $53B for reconstruction: World Bank

Gaza’s reconstruction will require an estimated $53.2 billion as Israeli military attacks have caused $49 billion in damages, the World Bank Group reported.

The findings were published Tuesday in the “Gaza and West Bank Rapid Damage and Needs Assessment” report, which analyzes the destruction, economic losses, and recovery needs across nearly all sectors of the Palestinian economy.

Jointly prepared by the World Bank, the European Union and the United Nations, the report highlights the devastating toll of the conflict that began on Oct. 7, 2023. The war has led to massive casualties, widespread displacement, and severe damage to social, physical, and economic infrastructure, triggering a deep humanitarian crisis.

Residential sector suffers most damage

The report noted that damage to residential buildings accounts for 53% of total destruction, making it the hardest-hit sector. The commercial and industrial sectors follow, comprising 20% of the losses, while critical infrastructure, including health care, water, and transportation, represents over 15% of the total damage.

The physical destruction is valued at $29.9 billion, while economic losses—stemming from reduced productivity, lost income, and rising operational costs—are estimated at $19.1 billion. The report identified health care, education, and trade as the most severely impacted sectors.

Economic activity in Gaza has come to a near standstill, with prices skyrocketing by over 300% within a year, as food prices alone have surged by 450%.

Meanwhile, Gaza’s economy is projected to shrink by 83% in 2024. Despite housing 40% of the Palestinian population, Gaza’s contribution to the whole Palestinian economy has dropped to just 3%.

The report also warns that the West Bank is facing economic difficulties, forecasting a 16% contraction in 2024.