Israeli Blockade of Gaza Strip Since 2007 Destroys Enclave's Economy - UN Agency

MOSCOW (Sputnik) - The Israeli blockade of the Gaza Strip since 2007 has caused a fall in real GDP per capita and a sharp increase in unemployment across the enclave, a fresh report by the UN Conference on Trade and Development (UNCTAD) showed on Wednesday.

"In the period 2006–2022, the population of Gaza grew by 61%, but GDP grew by only 1.1% and real GDP per capita shrank by 27%, from $1,994 in 2006 to $1,257 in 2022, compared with $2,923 and $4,458 in the West Bank, respectively," the UNCTAD said in the report on its assistance to the Palestinian people.

During the same period, the Gaza Strip saw a 157% increase in the number of unemployed workers, with unemployment rising to 45.3% from 34.8%. Meanwhile, restrictions on the domestic market caused structural changes in the enclave's economy, the report read.

"This ratio fell to 44% with the onset of the restrictions and closures in 2007 and reached an all-time low in 2021, at 27.7%. The economy of Gaza has undergone a significant structural distortion because of restrictions on movement, limited access to imported inputs, the destruction of the productive base and semi-autarkic isolation from domestic and global markets," the report read.

In 2007, after Palestinian movement Hamas seized control over the Gaza Strip, Israel imposed a blockade and reduced exports to the region to a humanitarian minimum, while completely banning imports from the enclave. The situation persisted for the next 16 years, although some of the restrictions were altered.

Hamas launched a surprise large-scale rocket attack against Israel from the Gaza Strip on October 7 and breached the border. Israel launched retaliatory strikes and ordered a complete blockade of the Gaza Strip, home to more than 2 million people, cutting off supplies of water, food and fuel.

The blockade was later eased to allow trucks with humanitarian aid into the Gaza Strip. The escalation of the conflict has resulted in thousands of people killed and injured on both sides.