Reconstruction and recovery in Gaza are projected to require $53 billion, according to the Gaza & West Bank Interim Rapid Damage and Needs Assessment (IRDNA) released today. The report evaluates damages, losses, and reconstruction needs across nearly all sectors of the Palestinian economy using data from October 2023 to October 2024.
The IRDNA follows a globally recognized methodology applied in various contexts for recovery planning. Due to on-ground access restrictions and the rapidly evolving situation in Gaza, the report provides an interim estimate of impacts and needs. Physical structure damages alone are estimated at about $30 billion. Housing is the most affected sector, accounting for 53% of total damages, followed by commerce and industry at 20%. Lifeline infrastructure damage such as health, water, and transport is over 15% of total damages.
Economic losses from reduced productivity, foregone revenues, and operating costs are estimated at $19 billion. Health, education, and commerce bear significant impacts. Some sectors face higher recovery needs than physical destruction values due to additional management requirements for rubble and debris ranging between 41 to 47 million tons.
Gaza's economic production has almost entirely halted with prices soaring over 300% within a year; food prices alone increased by 450%. The economy contracted by an estimated 83% in 2024, reducing its contribution to the overall economy to just 3%, despite being home to 40% of the population in Palestinian territories. The West Bank's economy also struggled with a projected contraction of 16% in 2024.
Jointly produced by the World Bank Group, United Nations, and European Union, the report outlines a roadmap for sequencing recovery efforts with associated short- and medium-term costs. It emphasizes a coordinated multisectoral response involving all stakeholders. Recovery speed, scale, and scope will depend on governance arrangements, entry mobility within Gaza for people and goods, law enforcement measures, safety considerations.