Economy - overview:
High population density, limited land access, and strict internal and external 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 in response to security interests in Israel, disrupted labor and commodity relationships with the Gaza Strip. In 2001, and even more severely in 2003, Israeli military measures in PA areas resulted in the destruction of much capital plant, the disruption of administrative structure, and widespread business closures. Including the West Bank, the UN estimates that more than 100,000 Palestinians out of the 125,000 who used to work in Israel or in joint industrial zones have lost their jobs. Half the labor force is unemployed. Israeli withdrawal from the Gaza Strip in September 2005 offers some medium-term opportunities for economic growth, especially given the removal of restrictions on internal movement. In addition, recent agreements and continuing negotiations on the administration of Gaza's border crossings increase the prospects for trade.

GDP (purchasing power parity):
$768 million (2003 est.)

GDP (official exchange rate):
NA

GDP - real growth rate:
4.5% (2003 est.)

GDP - per capita (PPP):
$600 (2003 est.)

GDP - composition by sector:
agriculture: 9%
industry: 28%
services: 63% (includes West Bank) (2002 est.)

Labor force:
278,000 (April-June 2005)

Labor force - by occupation:
agriculture: 11.9%
industry: 18%
services: 70.1% (2005)

Unemployment rate:
31% (includes West Bank) (January-September 2005 avg.)

Population below poverty line:
81% (2004 est.)

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices):
3% (includes West Bank) (2004)

Budget:
revenues: $964 million
expenditures: $1.34 billion; including capital expenditures of $NA; note - these budget data include West Bank (2004)

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 have 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:
NA%

Electricity - production:
NA kWh; note - electricity supplied by the Gaza Strip power plant and by an Israeli utility

Electricity - consumption:
NA kWh

Electricity - exports:
0 kWh (2001)

Electricity - imports:
NA kWh; note - some electricity supplied by an Israeli utility (2005)

Exports:
$270 million f.o.b.; note - includes West Bank (2003)

Exports - commodities:
citrus, flowers, textiles

Exports - partners:
Israel, Egypt, West Bank (2004)

Imports:
$1.952 billion c.i.f.; note - includes West Bank (2003)

Imports - commodities:
food, consumer goods, construction materials

Imports - partners:
Israel, Egypt, West Bank (2004)

Debt - external:
$0; note - includes West Bank (2002)

Economic aid - recipient:
$2 billion; note - includes West Bank (2004 est.)

Currency (code):
new Israeli shekel (ILS)

Exchange rates:
new Israeli shekels per US dollar - 4.4877 (2005), 4.482 (2004), 4.5541 (2003), 4.7378 (2002), 4.2057 (2001)