“Every additional day that this war continues is exacting huge and compounding costs to Gazans and all Palestinians” said United Nations Development Programme Administrator Achim Steiner.

At least 370,000 housing units in Gaza have been damaged, including 79,000 destroyed completely, according to the new report by the UNDP and the Economic and Social Commission for Western Asia, which details how Israel’s assault has devastated the economy of the Palestinian territories, and how the impact will increase the longer the conflict goes on.

After the previous Israeli wars in Gaza, housing was rebuilt at a rate of 992 units per year. Even if Israel allows a five-fold increase of construction material to enter Gaza, it would take until 2040 to rebuild the destroyed houses, without repairing the damaged ones, the report said.

In Gaza, the Israeli offensive has virtually shut down the economy, which contracted 81% in the last quarter of 2023. The report said the “productive basis of the economy has been destroyed,” with sectors experiencing losses of more than 90%.

Gaza, home to some 2.3 million Palestinians, has been under blockade by Israel since 2007, putting tight controls on what enters and exits the territory. Even before the war, it faced “hyper-unemployment” of 45%, reaching nearly 63% among younger workers. Since the war began, it lost some 201,000 jobs.

The war has also impacted the West Bank, where for months Israel has imposed restrictions on movement. In 2024, the entire Palestinian economy — including both Gaza and the West Bank — has so far contracted 25.8%, and if the war continues the loss will reach 29% by July, equivalent to $7.6 billion, the report said.