The economy of the Gaza Strip has experienced a severe downturn in the two years following the conflict with Israel, according to reports from international and Palestinian agencies. Data indicates a sharp rise in unemployment and a significant contraction in Gross Domestic Product (GDP), impacting the population’s access to income and resources.
A report from the United Nations Conference on Trade and Development (UNCTAD) stated that Gaza’s GDP declined by 87 percent over two years, falling to $362 million. The agency reported that GDP per capita dropped to $161, a level not seen since 2003.
Separately, the Palestinian Central Bureau of Statistics (PCBS) issued a report noting that the unemployment rate in the Gaza Strip reached 80 percent. The bureau stated this contributed to a total of 550,000 unemployed individuals across the Palestinian territories.
Residents of Gaza described their circumstances to Al Jazeera. Alaa Alzanin, a 41-year-old day laborer, said he is now unemployed and unable to provide for his family. “I used to work with an axe to open water channels between the trees, plough the soil around them, spray pesticides, and plant tomatoes and cucumbers,” Alzanin said. “I used to work from 7am to 4pm for 40–50 shekels [$13-$15] per day.”
Majed Hamouda, 53, stated that his family relies on collecting and selling plastics and other materials to afford food. His son, who he said had previously won a school science competition, now assists in this effort. “Now it’s become a dream to eat a tomato or a cucumber,” Hamouda told Al Jazeera.
Prior to the conflict, the private sector was a significant driver of Gaza’s economy. Maher Altabbaa, director-general of the Gaza Governorate Chamber of Commerce and Industry, told Al Jazeera that the private sector “used to contribute more than 52 percent of employment, relying on small and medium enterprises (SMEs) as the backbone.” He added that the agricultural sector had achieved self-sufficiency in many products and that the Gaza Strip contributed approximately 17 percent of the Palestinian GDP.
The humanitarian situation has also been documented by aid organizations. The United Nations’ World Food Programme has stated that supplies entering the territory are not meeting the nutritional needs of the population. The British government previously estimated that before the most recent conflict, about 80 percent of Gaza’s population was dependent on humanitarian assistance.
Ismail al-Thawabta, the head of the Gaza Government Media Office, estimated total economic losses at $70 billion and said that 90 percent of all sectors, including housing and infrastructure, have been affected. Al-Thawabta outlined government plans for economic recovery, which include supporting small and medium-sized enterprises to increase employment, regulating the market, and developing an economic database to inform future policies.
He stated that recovery would require the reopening of all crossings to allow for the entry of raw materials and production inputs. “The key productive sectors [industry, agriculture and services] have to be re-established as the true path to job creation and reducing dependence on aid,” al-Thawabta said.
