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Palestinians in Gaza have suffered from the cumulative costs, human and economic, of recurrent hostilities over the last three decades, as well as prolonged restrictions on the movement of people and commercial goods at border crossings, limits to fishing off Gaza’s coast, and now the effects of the COVID-19 pandemic.

The alleviation of environmental hazards in Gaza—closing ten hectares of dump sites and enhancing solid waste management for the benefit of about 948,000 Palestinians. Last Updated: Oct 10, 2022 Development assistance to the Palestinians has experienced a steep decline over the last decade and a half, from about $2 billion (27% of Palestinian GDP) in 2008 to about $300 million (1.8% of GDP) in 2021.

Palestinian Territories' Economic Update October 2021. Download Palestinian Territories report: English. Following an improvement in the health situation, lockdowns were eased in Q1 2021 and the Palestinian economy started showing signs of recovery. The recovery was interrupted in Gaza by an 11-day conflict in May while the West Bank continued its upward trajectory.

While the decade long blockade is the core issue, a combination of factors has more recently impacted the situation in Gaza; including the decision of the Palestinian Authority (PA)’ to reduce the monthly payments by USD30 million to the area, the winding down of the US$ 50- 60 million per year of the US Government aid program, and the cuts to the United Nations Relief and Works Agency program.

The Palestinian economy was stagnant and the socio-economic situation already difficult prior to the breakout of COVID-19. This is attributed to restrictions by Israel (on trade, movement and access), recurrent hostilities, internal divide, and falling aid inflows.

Palestinian Territories' Economic Update — April 2021. After a successful containment of the COVID-19 first outbreak in the spring of 2020, the second and third waves have been more challenging. Q2 2020 witnessed one of the largest economic contractions on record, but activity has slightly improved since.