Ongoing blockade will cause Gaza to explode in the face of Israel, Hamas warns
Employees are being laid off and shops are closing down in the cash-strapped Gaza Strip, while the World Bank warns that the economy is collapsing after a decadelong blockade.
GAZA CITY, Gaza Strip — Abo Iskandar Bakery, a well-known bakery in the Gaza Strip, posted Oct. 1 on its Facebook page a job for a full-time baker. In less than 24 hours, about 3,000 applicants replied, including university graduates.
This came a few days after the World Bank report published Sept. 27 on the economic situation in the Gaza Strip, which warned against an economic catastrophe in the cash-strapped coastal enclave because of the ongoing Israeli blockade since 2007.
The report said, “The economy in Gaza is collapsing, suffering from a decade-long blockade and a recent drying up of liquidity, with aid flows no longer enough to stimulate growth. The result is an alarming situation with every second person living in poverty and the unemployment rate for its overwhelmingly young population at over 70 percent.”
It continued, “Gaza’s economy is in free fall, marking minus 6 percent growth in the first quarter of 2018 with indications of further deterioration since then. While the decade-long blockade is the core issue, a combination of factors has more recently impacted the situation in Gaza; including the winding down of US$50-60 million per year of the US Government aid program, and the cuts to the United Nations Relief and Works Agency program.”
