Skip To Content

Support the Forward

Funded by readers like you DonateSubscribe
Breaking News

Gaza Economy Could Quadruple Without Blockade and Wars

Gaza’s economy, stifled by the highest unemployment rate in the world, blockades, poor governance and a series of military conflicts, is headed towards a “collapse,” a new report by the World Bank says.

“The report estimates that Gaza’s GDP would have been about four times higher than it currently is if it weren’t for the conflicts and the multiple restrictions,” said a World Bank news release published Thursday.

The report says that the blockade imposed on Gaza by Israel and Egypt in 2007 after the militant group Hamas took over has halved the region’s GDP.

“Gaza’s exports virtually disappeared, and the manufacturing sector has shrunk by as much as 60 percent,” said Steen Lau Jorgensen, World Bank country director for the West Bank and Gaza, in the news release.

Last summer’s war between Israel and Hamas also had enormous effects on Gaza’s economy, especially the agriculture, construction, manufacturing and electricity sectors.

Gaza’s overall unemployment rate is now 43 percent, and its youth unemployment rate is 60 percent. Nearly 80 percent of Gaza residents receive social assistance.

“The current market in Gaza is not able to offer jobs, leaving a large population in despair particularly the youth,” Jorgensen said. “The economy cannot survive without being connected to the outside world.”


Republish This Story

Please read before republishing

We’re happy to make this story available to republish for free, unless it originated with JTA, Haaretz or another publication (as indicated on the article) and as long as you follow our guidelines. You must credit the Forward, retain our pixel and preserve our canonical link in Google search.  See our full guidelines for more information, and this guide for detail about canonical URLs.

To republish, copy the HTML by clicking on the yellow button to the right; it includes our tracking pixel, all paragraph styles and hyperlinks, the author byline and credit to the Forward. It does not include images; to avoid copyright violations, you must add them manually, following our guidelines. Please email us at [email protected], subject line “republish,” with any questions or to let us know what stories you’re picking up.

We don't support Internet Explorer

Please use Chrome, Safari, Firefox, or Edge to view this site.