Gaza Strip Economy Profile 2009

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.

GDP (purchasing power parity)

$11.95 billion (2008 est.)
$5.034 billion (2006 est.)
$5.327 billion (2005 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$6.641 billion (2008 est.) (2008 est.)

GDP - real growth rate

0.8% (2008 est.)
-8% (2006 est.)
4.9% (2005 est.)

GDP - per capita (PPP)

$2,900 (2008 est.)
$1,100 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 8%
industry: 13%
services: 79% (includes West Bank) (2007 est.)

Population below poverty line

80% (2007 est.)

Labor force

267,000 (2006)

Labor force - by occupation

agriculture: 12%
industry: 5%
services: 83% (June 2008)

Unemployment rate

41.3% (June 2008)
34.8% (2006)

Household income or consumption by percentage share

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

Budget

revenues: $1.149 billion
expenditures: $2.31 billion
note: includes West Bank (2006)

Inflation rate (consumer prices)

11.5% (2008)
3.6% (2006)
note: includes West Bank

Commercial bank prime lending rate

NA% (31 December 2008)
7.73% (31 December 2006)

Stock of money

$NA (31 December 2008)
$1.574 billion (31 December 2007)

Stock of quasi money

$1.381 billion (31 December 2008)
$1.206 billion (31 December 2007)

Stock of domestic credit

$359.7 million (31 December 2008)
$368.2 million (31 December 2007)

Industries

textiles, food processing

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 (2008)

Electricity - imports

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

Agriculture - products

olives, citrus fruit, vegetables, flowers, beef, dairy products

Exports

$339 million (2006)

Exports - commodities

citrus, flowers, textiles

Imports

$2.84 billion (2006)
$2.44 billion (2005)

Imports - commodities

food, consumer goods, construction materials

Debt - external

$1.3 billion (2007 est.)

Economic aid - recipient

$1.4 billion; (includes West Bank) (2006 est.)

Currency (code)

new Israeli shekel (ILS)

Currency (code)

ILS

Exchange rates

new Israeli shekels (ILS) per US dollar - 3.56 (2008 est.), 4.14 (2007), 4.4565 (2006), 4.4877 (2005), 4.482 (2004)

Fiscal year

calendar year