Gaza Strip Economy Profile 2007

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 intifadah 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, which have not yet been realized due to Israeli military activities in the Gaza Strip in 2006, continued crossings closures, and the international community's financial embargo of the PA after HAMAS took office in March 2006.

GDP (purchasing power parity)

$5.327 billion (includes West Bank) (2005 est.)

GDP (official exchange rate)

$3.45 billion (includes West Bank) (2003 est.)

GDP - real growth rate

4.9% (includes West Bank) (2005 est.)

GDP - per capita (PPP)

$1,500 (includes West Bank) (2003 est.)

GDP - composition by sector

agriculture: 8%
industry: 18.2%
services: 73.9% (includes West Bank) (2005 est.)

Population below poverty line

63.1% (2005 est.)

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices)

2.9% (includes West Bank) (2005)

Labor force

259,000 (2005)

Labor force - by occupation

agriculture: 12%
industry: 18%
services: 70% (2005)

Unemployment rate

20.3% (includes West Bank) (2005)

Budget

revenues: $1.23 billion
expenditures: $1.64 billion; including capital expenditures of $44 million; (includes West Bank) (2005)

Industries

generally small family businesses that produce textiles, soap, olive-wood carvings, and mother-of-pearl souvenirs; the Israelis had established some small-scale modern industries in an industrial center, but operations ceased prior to Israel's evacuation of Gaza Strip settlements

Industrial production growth rate

2.4% (includes West Bank) (2005)

Electricity - production

140,000 kWh (2005)

Electricity - consumption

230,000 kWh (2005)

Electricity - exports

0 kWh (2005)

Electricity - imports

90,000 kWh; note - from Israeli Electric Company (2005)

Agriculture - products

olives, citrus, vegetables; beef, dairy products

Exports

$301 million f.o.b.; (includes West Bank) (2005)

Exports - commodities

citrus, flowers, textiles

Exports - partners

Israel, Egypt, West Bank

Imports

$2.44 billion c.i.f.; (includes West Bank) (2005)

Imports - commodities

food, consumer goods, construction materials

Imports - partners

Israel, Egypt, West Bank (2004)

Debt - external

$NA

Economic aid - recipient

$1.14 billion; (includes West Bank) (2004 est.)

Currency (code)

new Israeli shekel (ILS)

Exchange rates

new Israeli shekels per US dollar - 4.4565 (2006), 4.4877 (2005), 4.482 (2004), 4.5541 (2003), 4.7378 (2002)

Fiscal year

calendar year