World Bank: Gaza reconstruction needs estimated at $53b 

The reconstruction and recovery of Gaza will require an estimated $53 billion, according to the World Bank’s Gaza & West Bank Interim Rapid Damage and Needs Assessment (IRDNA) report released on Wednesday.

The report, covering data from October 2023 to October 2024, evaluates damages, losses, and economic recovery requirements across nearly all sectors of the Palestinian economy.

Housing and Infrastructure among Hardest Hit

The assessment estimates physical damages at approximately $30 billion, with housing accounting for 53 per cent of the total destruction. The commerce and industry sector follows at 20 per cent, while essential infrastructure, including health, water, and transport, comprises more than 15 per cent of the overall damage.

Severe Economic Contraction

Economic losses, stemming from reduced productivity, foregone revenues, and operational costs, are projected at $19 billion, with the health, education, and commerce sectors bearing the heaviest burden.

Gaza’s economy is estimated to have contracted by 83 per cent in 2024, reducing its contribution to the overall economy to just 3 per cent despite being home to 40 per cent of the Palestinian population.

Prices in Gaza have soared by more than 300 per cent over the past year, with food prices surging by 450 per cent. The economic situation in the West Bank has also deteriorated, with an estimated contraction of 16 per cent in 2024.

Challenges to Recovery and Reconstruction

In addition to quantifying damages, the assessment underscores the immense recovery challenges, including the removal of an estimated 41 to 47 million tons of rubble and debris. Some sectors, such as waste management, require greater funding for recovery than the value of the physical destruction itself.

Roadmap for Recovery

Jointly conducted by the World Bank Group, the United Nations, and the European Union (EU), the report outlines a roadmap for phased recovery efforts and associated costs in the short and medium term. It emphasises the need for a coordinated multisectoral response involving all stakeholders, while also noting that the pace and scale of recovery will depend on governance, security conditions, and the movement of people and goods within Gaza.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser