Israel’s war in Gaza has pushed the territory into what the UN describes as a “human-made abyss”, with destruction so extensive that rebuilding could cost over $70 billion and take decades. According to a new report by UNCTAD, Israeli military operations have “undermined every pillar of survival,” leaving all 2.3 million Gazans facing extreme, multidimensional poverty.
The economic collapse is staggering: Gaza’s economy shrank by 87% between 2023 and 2024, and GDP per capita has fallen to $161(one of the lowest levels in the world). The report says this is the steepest economic contraction ever recorded, erasing 22 years of development in under two years.
The West Bank has also suffered severe setbacks due to Israeli restrictions on movement, settlement expansion, and a sharp drop in revenues. Israel’s withholding of fiscal transfers has left the Palestinian Authority struggling to provide basic services at the very moment when massive investment is needed for reconstruction.
Although a US-brokered ceasefire has been held since October, it remains fragile. The Gaza health ministry reports 342 Palestinians killed by Israeli fire since the truce began, while Israel says three of its soldiers have been killed by militant attacks. Hamas and Islamic Jihad continue returning the remains of Israeli hostages as part of the ceasefire agreement, though delays have sparked disputes.
On the ground, living conditions in Gaza are dire. The territory is effectively split between Israeli-controlled areas and Palestinian-controlled areas. According to the World Food Programme, most families cannot afford basic food, diets have been reduced to minimal staples, and fuel shortages force households to cook using plastic or other hazardous materials.
Despite the ceasefire, the humanitarian emergency remains immense. Since the start of the conflict in 2023, more than 69,000 Palestinians, mostly civilians, have been killed, with thousands still buried under rubble. Israel launched its offensive after the Hamas-led attack of 7 October 2023, which killed 1,200 people and saw 251 taken hostage.Amid this devastation, the UN Security Council has endorsed Donald Trump’s 20-point plan for Gaza, which proposes installing an interim technocratic Palestinian administration supervised by an international “board of peace” and supported by a foreign security force. Yet there is little clarity on how even the plan’s short-term requirements will be implemented, let alone the monumental task of rebuilding Gaza.
Source:
Burke, J. (2025, November 25). Rebuilding ‘human-made abyss’ in Gaza will cost at least $70bn, UN says. The Guardian. https://www.theguardian.com/world/2025/nov/25/rebuilding-human-made-abyss-gaza-un