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Economy - overview: High population density, limited land access, and strict internal and external security controls have kept economic conditions in the Gaza Strip - the smaller of the two areas under the Palestinian Authority (PA) - even more degraded than in the West Bank. The beginning of the second intifada in September 2000 sparked an economic downturn, largely the result of Israeli closure policies; these policies, which were imposed to address security concerns in Israel, disrupted labor and trade access to and from the Gaza Strip. In 2001, and even more severely in 2003, Israeli military measures in PA areas resulted in the destruction of capital, the disruption of administrative structures, and widespread business closures. The Israeli withdrawal from the Gaza Strip in September 2005 offered some medium-term opportunities for economic growth, but Israeli-imposed crossings closures, which became more restrictive after HAMAS violently took over the territory in June 2007, have resulted in widespread private sector layoffs and shortages of most goods. The status of the crossings, which are closed to all but the most basic goods, has not changed following Israel's military offensive into the Gaza Strip in early 2009. Definition: This entry briefly describes the type of economy, including the degree of market orientation, the level of economic development, the most important natural resources, and the unique areas of specialization. It also characterizes major economic events and policy changes in the most recent 12 months and may include a statement about one or two key future macroeconomic trends. Source: CIA World Factbook - Unless otherwise noted, information in this page is accurate as of September 17, 2009 |
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