Impoverished Gaza's economy on verge of total collapse
The economic situation in the long-suffering Gaza Strip has become so dire, some economists are calling on ex-pats to pump money into the small enclave.
GAZA CITY, Gaza Strip — Economists say the Gaza Strip's economy has entered a phase of total collapse as the Israeli blockade continues into its 11th year and the Palestinian Authority (PA) in the West Bank has failed to lift sanctions, despite what Gazans hailed as a promise of relief weeks ago.
Gazans are strapped for cash and markets are suffering from an unprecedented recession. Last month, some economic experts called on Gazan citizens living abroad and businessmen to send money to their families in Gaza in the hope of improving the economy and stopping its collapse. Business-media organizations started an Arabic hashtag that translates into #Transferyourmoney. Meanwhile, on Dec. 30, for the first time in many years, shops in the southern Gaza Strip closed to protest the poor economic conditions.
According to a Dec. 31 Haaretz article, the number of trucks carrying merchandise into Gaza from the southern Kerem Shalom crossing declined during December, to around 530 per day from a peak of almost 1,000 in October 2015.
“In the final quarter of 2017, the amount of merchandise entering Gaza was down around 20% from the same period last year, due mainly to the decline in Gazans’ purchasing power as a result of the worsening economic situation,” the article said.
