The Gaza Strip witnessed an immediate recovery following the end of Eid al-Fitr but it returned to a worse condition due to the persistence of the 12-year-tightened-siege. The economic pressure on Gaza is increasing especially after UNRWA’s recent decision to dismiss about 1000 employees from its Gaza employees for the first time in history of the agency.
Markets are empty
In the Gaza Strip markets one could hardly see a salesman with two or three customers at one time. Traders and sellers complain of an unprecedented drop in purchasing and trading in the Gaza Strip due to sanctions that target salaries as well as in light of UNRWA’s threats to fire 1000 of its employees.
Trader Musab Badran told the PIC that many people are no longer interested in buying basic foodstuffs and necessities adding that the situation of the market in the Gaza Strip is unprecedented.
Abu Tamer another merchant confirms that he can no longer bring new merchandise to his shop for women’s accessories and clothing pointing out that for the first time since he has started working in this profession more than 25 years ago he cannot make enough profits to cover his daily spending.
Young man Amjad al-Dayya confirmed to the PIC correspondent that he intends to close his shop which was opened less than a year ago in which he sells children’s clothing attributing this decision to the low purchasing power. “The shop requires NIS 10 per day and I sell less than ten shekels.”
The collapse of the economy
Ali al-Hayek President of the Association of Palestinian Businessmen warned of a large-scale collapse of the economic system in the Gaza Strip as a result of the cessation of movement of exports from the sector to the outside world completely and the prevention of the Israeli occupation of 400 items of goods from entering Gaza through the Karam Abu Salem crossing.
He stressed that the economic situation has reached unprecedented collapse which got worse than the time of wars on Gaza. He expected that this year will be disastrous in terms of the number of unemployed and poor people and those dependent on humanitarian assistance.
The Chairman of the Association of Businessmen said that the purchasing power in the Gaza Strip has reached its minimum as a clear indicator of the outbreak of economic crises the weakness of liquidity and the high number of returned bank checks which foreshadows an expected increase in indicators of misery due to the conditions arising from the blockade and the closure of all commercial crossings.
Unprecedented decline
Specialist in economic affairs Louay Rajab told the PIC that the economic indicators confirm that the Gaza Strip has reached an unprecedented collapse noting that the sanctions of the Palestinian Authority exceeded the impact of the siege and the three Israeli wars altogether.
The Gaza Strip’s GDP has fallen to the lowest level cash flow in the Gaza Strip has declined by a monthly average of $ 35-40 million and public sector salaries have fallen from $50 to $45 million.
“The unemployment rate in the Gaza Strip has reached more than 46% the highest in the world. There are more than 240000 unemployed people poverty rates are 65% while food insecurity is 50% among households in the Gaza Strip as purchasing power and imports declined by more than 50%” he noted.
Rajab explains that more than one million people receive aid from UNRWA and relief organizations operating in the Gaza Strip.
The economic analyst describes the economic indicators as ‘frightening’ in the Gaza Strip warning that it could escalate to an unexpected extent if there is no intervention and urgent action to end the crisis.
He confirmed that there are many orders of imprisonment for a large number of citizens as a result of the lack of money and liquidity in the Gaza Strip in addition to the increase of returned bank checks (10% of the total checks compared to 6% previously) all of which reduced the purchasing power that affected the commercial movement and the market activity.
