Economy of Gaza

Many Gazans worked in the Israeli service industry when the border was open, but after Israel's 2005 disengagement from the Gaza Strip, this source of jobs disappeared.

A report by human rights and development groups published in 2008 stated that Gaza had suffered a long term pattern of economic stagnation and dire development indicators, the severity which was increased exponentially by the Israeli blockade. The report cited a number of economic indicators to illustrate the point: In 2008, 95% of Gaza's industrial operations were suspended due to lack of access inputs for production and export problems. In 2009, unemployment in Gaza was close to 40%. The private sector which generates 53% of all jobs in Gaza was devastated and businesses went bankrupt. In June 2005, 3,900 factories in Gaza employed 35,000 people, by December 2007, only 1,700 were still employed. The construction industry was paralyzed with tens of thousands of laborers out of work. The agriculture sector was hard hit, affecting nearly 40,000 workers dependent on cash crops.

Gaza's food prices rose during the blockade, with wheat flour going up 34%, rice up 21%, and baby powder up 30%. In 2007, households spent an average of 62% of their total income on food, compared to 37% in 2004. In less than a decade, the number of families depending on UNRWA food aid increased tenfold. In 2008, 80% of the population relied on humanitarian aid in 2008 compared to 63% in 2006. According to a report by OXFAM in 2009, Gaza suffered from a serious shortage of housing, educational facilities, health facilities and infrastructure, along with an inadequate sewage system that contributed to hygiene and public health problems.

Following a significant easing of the closure policy in 2010, the economy of Gaza began to see a substantial recovery from anemic levels