Short facts about the economy in Gaza Strip

Economy - overview:

Economic output in the Gaza Strip - which comes under the responsibility of the Palestinian Authority since the Cairo Agreement of May 1994 - declined perhaps one-third between 1992 and 1996. The downturn was largely the result of Israeli closure policies - the imposition of generalized border closures in response to security incidents in Israel - which disrupted previously established labor and commodity market relationships between Israel and the WBGS (West Bank and Gaza Strip). The most serious negative social effect of this downturn was the emergence of high unemployment; unemployment in the WBGS during the 1980s was generally under 5%; by 1995 it had risen to over 20%. Since 1997 Israel's use of comprehensive closures has decreased and, in 1998, Israel implemented new policies to reduce the impact of closures and other security procedures on the movement of Palestinian goods and labor. These changes fueled an almost three-year long economic recovery in the West Bank and Gaza Strip; real GDP grew by 5% in 1998 and 6% in 1999. Recovery was upended in the last quarter of 2000 with the outbreak of Palestinian violence, which triggered tight Israeli closures of Palestinian self-rule areas and a severe disruption of trade and labor movements.

GDP:	purchasing power parity - $1.11 billion (2000 est.)

GDP - real growth rate:

-7.5% (2000 est.)

GDP - per capita:

purchasing power parity - $1,000 (2000 est.)

GDP - composition by sector:

agriculture:  9% industry:  28% services:  63% (1999 est., includes West Bank)

Population below poverty line:

NA%

Household income or consumption by percentage share:

lowest 10%:  NA% highest 10%:  NA%

Inflation rate (consumer prices):

3% (includes West Bank) (2000 est.)

Labor force:

NA

Labor force - by occupation:

services 66%, industry 21%, agriculture 13% (1996)

Unemployment rate:

40% (includes West Bank) (yearend 2000)

Budget:

revenues:  $1.6 billion expenditures:  $1.73 billion, including capital expenditures of $NA note:  includes West Bank (1999 est.)

Industries:

generally small family businesses that produce textiles, soap, olive-wood carvings, and mother-of-pearl souvenirs; the Israelis have established some small-scale modern industries in an industrial center

Industrial production growth rate:

NA%

Electricity - production:

NA kWh; note - electricity supplied by Israel

Electricity - consumption:

NA kWh

Electricity - exports:

0 kWh (1999)

Electricity - imports:

NA kWh; note - electricity supplied by Israel

Agriculture - products:

olives, citrus, vegetables; beef, dairy products

Exports:

$682 million (f.o.b., 1998 est.) (includes West Bank)

Exports - commodities:

citrus, flowers

Exports - partners:

Israel, Egypt, West Bank

Imports:

$2.5 billion (c.i.f., 1998 est.) (includes West Bank)

Imports - commodities:

food, consumer goods, construction materials

Imports - partners:

Israel, Egypt, West Bank

Debt - external:

$108 million (1997 est.) (includes West Bank)

Economic aid - recipient:

$121 million disbursed (2000) (includes West Bank)

Currency:

new Israeli shekel (ILS)

Currency code:

ILS

Exchange rates:

new Israeli shekels per US dollar - 4.0810 (December 2000), 4.0773 (2000), 4.1397 (1999), 3.8001 (1998), 3.4494 (1997), 3.1917 (1996)

Fiscal year:

calendar year

Source: World Factbook