Gaza Strip - Economy

Economy

The economy of Gaza has deteriorated since the end of the Second Intifada due to both Gaza's high population density and the security restrictions it has been subjected to. Israel's closure policy, which was extended following the Hamas administration coming to power in 2007, has led to high levels of poverty and unemployment and an almost total collapse of the private sector which was heavily reliant upon export markets. The population is largely dependent on humanitarian assistance, primarily from the UN agencies.

An easing of Israel's closure policy in 2010 resulted in an improvement in some economic indicators, but regular exports from the Gaza Strip are still prohibited. According to the Israeli Defense Forces, the economy of the Gaza Strip improved in 2011, with a drop in unemployment and an increase in GDP. Lt. Col. Kobi Gertzvolf of the Israeli Defense Forces states that new malls have opened and local industry is developing. Lt. Col. Gertzvolf states that the economic upswing has led to the construction of hotels and a rise in the import of cars. Wide-scale development has been made possible by the unhindered movement of goods into Gaza through the Kerem Shalom Crossing and tunnels between the Gaza Strip and Egypt. The current rate of trucks entering Gaza through Kerem Shalom is 250 trucks per day. This figure fluctuates dependent on the level of interference with goods being brought into Gaza from Egypt through tunnels. The increase in building activity has led to a shortage of construction workers. To make up for the deficit, young people are being sent to learn the trade in Turkey.