Preliminary Assessment of the Economic Impact of the Destruction in Gaza and Prospects for Economic Recovery

Israel has occupied Gaza and the West Bank, including East Jerusalem, since June 1967. Despite the “withdrawal” of Israel from Gaza in 2005, it has retained control over its airspace and all land and sea borders, except for the 12 km border with Egypt. Since the early 1990s, and greatly amplified after 2007, the Palestinian people in Gaza have been subjected to prolonged and severe restrictions on their movement that, in combination with tight restrictions on trade in goods, in effect amount to a blockade on the densely populated 365 km2 Gaza Strip. Furthermore, Israel does not allow the construction and operation of air or seaports and bans or restricts the importation of critical production inputs and technology.