Economy

Economy—overview: Economic progress in the Gaza Strip has been hampered by attacks on Israel and resultant tight Israeli security restrictions. In 1991 roughly 40% of Gaza Strip workers were employed across the border by Israeli industrial construction and agricultural enterprises with worker remittances supplementing GDP by roughly 50%. Gaza has depended upon Israel for nearly 90% of its external trade. The Persian Gulf crisis and its aftershocks have dealt blows to Gaza since August 1990. Worker remittances from the Gulf states have dropped unemployment and popular unrest have increased and living standards have fallen. Bombings and attacks on Israeli civilians led to the redeployment of Israeli forces in the Gaza Strip in May 1994, which has added to the set of adjustment problems. This series of disruptions has meant a sharp decline in employment in Israel since 1991 and a drop in GDP as a whole. An estimated 378 000 persons were in refugee camps in 1996.

GDP: purchasing power parity—$1 billion (1996 est.)

GDP—real growth rate: -6.9% (1996 est.)

GDP—per capita: purchasing power parity—$1 100 (1996 est.)

GDP—composition by sector:

agriculture: 33%

industry: 25%

services: 42% (1995 est. includes West Bank)

Inflation rate—consumer price index: 8.4% (1996 est.)

Labor force: NA

by occupation: services 66% industry 21% agriculture 13% (1996)

note: excluding Israeli settlers

Unemployment rate: 28% (1997 est.)

Budget:

revenues: $684 million

expenditures: $779 million including capital expenditures of $NA (1996)

note: includes West Bank

Industries: generally small family businesses that produce textiles soap olive-wood carvings and mother-of-pearl souvenirs; the Israelis have established some small-scale modern industries in an industrial center

Industrial production growth rate: NA%

Electricity—capacity: NA kW

note: electricity supplied by Israel

Electricity—production: NA kWh

note: electricity supplied by Israel

Electricity—consumption per capita: NA kWh

Agriculture—products: olives citrus other fruits vegetables; beef dairy products

Exports:

total value: $630 million (f.o.b. 1997 est.) (includes West Bank)

commodities: citrus

partners: Israel Egypt West Bank

Imports: