Gaza's Economy and Infrastructure in Ruins: Rebuilding Costs and Challenges

State of Gaza's Economy

• 📉 Gaza's economy is virtually non-existent, with employment and investment at essentially nil.
• 💸 Money primarily changes hands for expensive food products, reflecting a dire situation.
• 📈 Nominal GDP saw an 83% decrease in the first full year of war, with a further 12% drop in Q1 2025.
• 🆘 An overwhelming 80% unemployment rate leaves nearly the entire population dependent on food aid.

Infrastructure and Property Destruction

• 💥 An estimated 78% of Gaza's buildings have been destroyed or heavily damaged.
• 🌽 98% of farmland is unusable due to Israeli strikes.
• ⚡ 83% of electric infrastructure has been destroyed.
• 🏠 92% of Palestinian homes have been destroyed, with returning residents finding total devastation.

Humanitarian Funding Shortfall

• 💧 The UN has secured only 28% of the $4 billion needed for urgent humanitarian operations in 2025.
• ⚠️ This highlights a critical need for international generosity to address the crisis.

Rebuilding Costs and Challenges

• 💰 Rebuilding cost estimates range from $50 to $80 billion, with some experts suggesting this is an underestimate.
• 🗓️ The UN estimates Gaza has lost the equivalent of 60 years of development.
• ☣️ The physical environment remains toxic due to unrecovered bodies and unexploded ordnance.
• 🏥 Rebuilding health infrastructure alone is estimated to cost over $7 billion.
• 📚 The education system requires approximately $4 billion to rebuild.
• 💡 Rebuilding housing is the largest cost, estimated at $15 billion.
• 🔌 The power grid reconstruction is estimated at $1.5 billion.

Long-Term Outlook

• ⏳ Rebuilding Gaza is expected to take years, if not decades.
• 🌍 The scale of destruction presents immense challenges for any future reconstruction efforts.