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 intifadah 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 continued 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.

GDP (purchasing power parity):

$5.034 billion (includes West Bank) (2006 est.)

GDP (official exchange rate):

$5.328 billion (includes West Bank) (2006 est.)

GDP - real growth rate:

-8% (includes West Bank) (2006 est.)

GDP - per capita (PPP):

$1,100 (includes West Bank) (2006 est.)

GDP - composition by sector:

agriculture: 8%
industry: 13%
services: 79% (includes West Bank) (2006 est.)

Labor force:

267,000 (2006)

Labor force - by occupation:

agriculture: 12%
industry: 18%
services: 70% (2005)

Unemployment rate:

34.8% (2006)

Population below poverty line:

80% (2007 est.)

Household income or consumption by percentage share:

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

Inflation rate (consumer prices):

3.6% (includes West Bank) (2006)

Budget:

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

Agriculture - products:

olives, citrus, vegetables; beef, dairy products

Industries:

generally small family businesses that produce textiles, soap, olive-wood carvings, and mother-of-pearl souvenirs; the Israelis had established some small-scale modern industries in an industrial center, but operations ceased prior to Israel's evacuation of Gaza Strip settlements

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 (2005)

Electricity - imports:

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

Exports:

$301 million f.o.b.; (includes West Bank) (2005)

Exports - commodities:

citrus, flowers, textiles

Exports - partners:

Israel, Egypt, West Bank (2006)

Imports:

$2.44 billion c.i.f.; (includes West Bank) (2005)

Imports - commodities:

food, consumer goods, construction materials

Imports - partners:

Israel, Egypt, West Bank (2006)

Economic aid - recipient:

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

Debt - external:

$NA

Currency (code):

new Israeli shekel (ILS)

Currency code:

ILS

Exchange rates:

new Israeli shekels per US dollar - 4.14 (2007), 4.4565 (2006), 4.4877 (2005), 4.482 (2004), 4.5541 (2003)

Fiscal year:

calendar year