The Gaza strip is a city different from any other Arab city due to its ongoing conflicts with Israel, which have taken a toll on its infrastructure and economy.
The economic situation in Gaza is dire. The people suffer from high unemployment rates, an increasing demographic, and the absence of basic human needs such as work, food and lodging. These factors exacerbate an already stagnant economy, a noticeably declining total GDP and per capita income. Gaza’s contribution to the overall GDP of Palestine is minimal. Major production sectors (commerce, manufacturing, services, and agriculture) have been put to a halt as crude materials have been prohibited, due to the blockade. The situation is further aggravated by a surge in wheat, oil, medicine and medical appliances.
Further, there are no laws or economic regulations in Gaza. As such, there are no figures available with which to gauge the economy. While some work for the government and are paid salaries, the vast majority of people in Gaza depend on the UNRWA (United Nations Relief and Work Agency) and other humanitarian and charity organizations for survival.
The situation in Gaza has led to unprecedented poverty and unemployment rates of 80% and 35% respectively. 36% of the population lives in poverty with 80% of the population receiving humanitarian aid from international NGO’s.
The current crisis is attributed to the Israeli blockade set in 19\1\2008 which restricts certain humanitarian aid and oil from entering the Strip. (Source: www.yallafinance.com )