IMF: Gaza’s economic collapse

The mission estimates that real GDP fell by nearly one percent, the first contraction since 2006, with GDP declining by about 15 percent in Gaza but rising by 4.5 percent in the West Bank with a sharp slowdown in the third quarter. Unemployment rates remain at high levels, reaching an estimated 41 percent in Gaza and 19 percent in the West Bank…

‘Strong efforts by the PA can only go so far to contain the crisis for a few months. The situation could become untenable, with a growing risk of social unrest and strikes that could lead to political instability. These serious risks could be mitigated if Israel quickly resumed transfers of clearance revenue and donors front loaded their aid’.

IMF End of Mission report (29 January, 2015).

One comment

  1. […] the blockade has comprehensively destroyed Gaza’s economy, perhaps irreversibly. Last year, real GDP in Gaza declined by 15%. Unemployment is close to 50%. Reconstruction after last year’s Operation Protective Edge, […]

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