The economy of war torn Gaza is in the verge of collapse with the Gaza Strip suffering the highest rate of unemployment in the world، World Bank reports.
A report by World Bank released on Friday، said that Gaza’s economy had been strangled by years of blockades، war and poor governance and faces a dangerous crisis over its ability to meet wages and other spending requirements.
The report indicated that about 43% of Gaza’s 1.8 million residents are unemployed، with youth unemployment reaching about 60% by the end of last year.
The report called for “lifting of the blockade on the movement of goods and people to allow Gaza’s tradable sectors to recover”.
The report is published almost a year after the 50-day conflict between Gaza militants and Israel، in which about 2،200 Palestinians were killed. On the Israeli side، 67 soldiers and six civilians were killed.
“Gaza’s unemployment and poverty figures are very troubling and the economic outlook is worrying. The current market in Gaza is not able to offer jobs، leaving a large population in despair، particularly the youth،” said Steen Lau Jorgensen، World Bank country director for the West Bank and Gaza.
“The ongoing blockade and the 2014 war have taken a toll on Gaza’s economy and people’s livelihoods. Gaza’s exports virtually disappeared and the manufacturing sector has shrunk by as much as 60%. The economy cannot survive without being connected to the outside world.”
World Bank describes Gaza’s economy as “tremendously damaged by repeated armed conflicts، the blockade and internal divide” and “reduced to a fraction of its estimated potential”.
“In Gaza، unemployment increased by as much as 11 percentage points to reach 43% – probably the highest in the world – and that in the West Bank it dropped by one percentage point.”
Source: The Guardian