A Palestinian man walks past shuttered shops during a general strike in Nablus in the occupied West Bank, on October 18, 2023, a day after a rocket hit a Gaza hospital killing hundreds.
| Photo Credit: ZAIN JAAFAR

Two Data Points published last week explored the impoverished nature of the Palestinian territories, especially Gaza, and how Israel controls employment, trade, water and electricity in both Gaza and the West Bank. This third and concluding part of the series on the Israel-Hamas conflict also explores how Israel controls the economy of the Palestinian territories, but focuses only on Israel’s control of exits and entry points, which determines trade and movement of men for employment and other needs.

With entries and exits by air and sea banned, only three crossings — two controlled by Israel and one by Egypt — are available for movement in and out of Gaza. In 2022, 4.24 lakh people were allowed to exit from Gaza to Israel or through Israel to the West Bank. The total estimated population of Gaza in mid-2022 was 20 lakh. In other words, one in five people were allowed to exit once in 2022. The more than 4 lakh exit permits issued in 2022 is the highest in about two decades; the previous high of 5.21 lakh was recorded in 2004. These numbers pale in comparison to the 60 lakh exits recorded in 2000.

Chart 1 | The chart shows the exits of people from Gaza to or through Israel (M=million, k=1,000).

Chart appears incomplete? Click to remove AMP mode

As can be seen in Chart 1, the exit of people permitted to Israel or through it took a dive in the 2000s and remained low in the 2010s due to escalation of hostility at various points in time. In 2008, only 0.26 lakh permits were issued, the lowest ever. In 2006, after Hamas won the Palestinian parliamentary elections and started controlling Gaza, Israel stopped most workers from entering the country. This is significant because Gaza lacks industries and most workers found employment in Israel or its settlements. Due to lack of permits, Gaza’s labour force participation rate dwindled in the following years reaching 35% in 2021, among the lowest in the world, as recorded in the Data Point last Monday. Of those who are looking for jobs in Gaza, half are unemployed. These are direct consequences of the decline in exit permits.

Click to subscribe to our Data newsletter

Not just workers, but patients from Gaza who need to cross Israel to access services in the West Bank get delayed for their appointments. In 2022, only two out of every three applications submitted for referral patients to exit Gaza were approved by the time of appointment. Given that Gaza has only 13 hospital beds per 10,000 population, which is among the lowest in the world, this restriction assumes more significance.

Chart 2 | The chart shows incoming goods to Gaza in terms of truckloads from Israel (k=1,000).

The Data Point published last Wednesday showed that in 2021, half the exports from Palestinian territories went to Israel and over 80% of its imports came from Israel. Therefore, restriction of goods movement can impair the Palestinian economy. Data show that in 2022, over 74,000 truckloads of goods were allowed into Gaza by Israel, the lowest since 2014. Chart 2 shows that goods to Gaza from Israel reduced to the lowest levels immediately after the Israeli blockade in 2007. Goods which Israel may consider as having a military use are denied entry.

Gaza’s import dependency on Israel for petrol, diesel, and cooking gas was high before 2018. With Israel scaling down fuel and gas exports to Gaza post-2018, Egypt has taken its spot.

Chart 3 | The chart shows petrol and diesel (in litres) which came into Gaza from Israel and Egypt.

There is severe restrictions on exports as well. In 2009, this was as low as 24 truckloads compared to 5,834 in 2022. While the number of truckloads allowed out of Gaza has improved in the last few years, the latest conflict could affect this.

Chart 4 | The chart shows outgoing goods from Gaza to or through Israel.

Source: “Movement in and out of Gaza in 2022” report from the United Nations Office for the Coordination of Humanitarian Affairs

Also read | The Israel-Palestine conflict is at bend point

Listen to our podcast | How Turkey’s economic and political trajectory compares to India | Data Point podcast

Depleted resources: A Palestinian man gestures at a closed petrol station in the aftermath of Israeli strikes on the Rafah refugee camp in the southern Gaza Strip on October 25, 2023.
| Photo Credit: SAID KHATIB

The Data point published on October 23, 2023, titled ‘Five wars in 15 years stifled Gaza’s growth’ described how the Gaza Strip and West Bank lagged behind many countries on several socio-economic indicators. It showed that the long conflict between Hamas and Israel and the widespread use of violence by Israeli forces on Palestinian territories have stalled Gaza’s socio-economic growth.

This second part of the three-part series on the conflict takes a look at how dependent Palestinians are on Israel for employment and basic amenities such as water and electricity. As a result, Israel controls a significant share of the territories’ economy.

Monday’s Data Point highlighted that the share of Palestinians who are either looking for jobs or are working was among the lowest in the world. It also showed that there are record levels of unemployment in West Bank and Gaza due to lack of industries. Reports show that even among those who are employed, a significant share of them works in Israel or in its settlements. As of early 2022, more than 1.5 lakh Palestinians were working in Israel and its settlements. This is one-fifth of all the workers from the West Bank. Their income contributed a quarter of the West Bank’s GDP.

Not only are many Palestinians unemployed, but many of them are also underemployed or paid inadequately. Reports show that 83% of workers from Gaza received less than the minimum wage ($435) as of 2021. Such heavy reliance on Israel, below-par payment, and constant bombardment mean that the GDP of Palestinian territories has grown at a snail’s pace over recent decades while Israel’s GDP showed rapid growth.

Chart 1 | The chart shows the difference in the GDP growth of Israel and Palestinian territories.

Charts appear incomplete? Click to remove AMP mode

Israel’s control over Palestine’s economy is more deeply felt through foreign trade restrictions. In 2021, over half of all items imported by the Palestinian territories came from Israel and over 80% of all exports went to Israel.

Chart 2 | The chart shows the major sources and destinations, of imports and exports, from and to the Palestinian territories in 2021.

Electricity, water and fuel, which form the bulk of Palestine’s imports, are largely supplied by Israel. Over 60% of Gaza’s electricity supply is imported from Israel, while the power plant in Gaza supplies the rest. The plant in turn imports diesel from Israel. Due to gaps in supply inside the territories, water is imported from Israel at a higher cost, forcing Palestinians to spend 8% to 13% of their income on it.

Chart 3 | The chart shows that electricity, water and fuel are among the top five imports of Palestinian territories.

This dependency has potentially fatal implications for Palestine should Israel cut off access, as is the case during the ongoing conflict.

Given that Palestinians rely heavily on Israel, a war with Tel Aviv can leave them stripped of resources, necessitating foreign aid. In Gaza, 80% of people depend on international assistance. However, foreign aid, which started declining in the 2010s, touched the lowest-ever level in the 2020s. In 2021, foreign aid formed only 1.8% of Palestinian GDP compared to 27% of the GDP in 2008.

Chart 4 | The chart shows the amount of donor aid as a share of the Palestinian territories’ GDP.

Moreover, Israel controls most of the entry and exits in the territories which results in a “permit regime,” typically leading to exploitation of workers, traders and patients. Consequently, many Palestinians are unable to leave Gaza or the West Bank on time. This restricts their employment opportunities, access to health services and even their access to family.

Source: United Nations Conference on Trade and Development, World Bank, Palestinian Central Bureau of Statistics, UN Comtrade

Also read | Endless woes: On the Israel-Hamas conflict and Palestine

Listen to our podcast | How Turkey’s economic and political trajectory compares to India | Data Point podcast

Palestinians inspect the damage after overnight Israeli strikes on Rafah in the southern Gaza Strip on October 22, 2023.
| Photo Credit: AFP

Since the beginning of Israeli strikes following Hamas’ surprise attack in southern Israel on October 7, over 4,700 people have died in the Gaza Strip, according to reports from the territory’s leaders. Of these, close to 1,800 were children, says the Palestinian health ministry. Israeli strikes on Gaza have also left about 16,000 people injured.

The Gaza Strip, a financially strained Palestinian territory, has been under Israeli blockade since 2007. It is been under the governance of Hamas, which has engaged in war with Israel five times in the last 15 years. The Gaza Strip was occupied by Israel during the 1967 war and returned to Palestine fully in 2005. As Gaza shares its border with Israel in the north and east, Egypt in the south, and the Mediterranean Sea in the west, its entries and exits are heavily controlled. In 2007, Israel imposed an air, land, and sea blockade on Gaza. This means that except the Rafah entrance on the Egyptian border, every other point is controlled by Israel.

Due to such intense scrutiny on the movement of men and goods combined with years of bombardment, Gaza has not seen meaningful development in recent decades. The latest war with Israel is the fifth in the last 15 years, with the other four recorded in 2008, 2012, 2014, and 2021. Each time, air strikes from Israel have flattened buildings and killed civilians. This has led to an increase in poverty levels.

The GDP per capita of the West Bank and Gaza in 2022 was $5,722 (Chart 1A). This was less than that of India ($7,096) and just above the GDP per capita of Pakistan ($5,452). Israel’s GDP per capita was seven times higher at $44,272.

Chart 1A | The chart shows GDP per capita, PPP (constant 2017 international $).

Chart appears incomplete? Click to remove AMP mode

Chart 1B | The chart shows the percentage of persons under the poverty line.

The death toll in Gaza has already reached record levels. With over 4,700 casualties and counting, Hamas’ fifth war with Israel has become the deadliest so far. The seven-week conflict in July-August 2014 killed about 2,250 Palestinians. While many children have died in the conflict, fertility levels in the region were among the highest in 2021 with 3.5 total births per woman. For comparison, India’s fertility rate was 2.08 (Chart 2A).

Chart 2A | The chart shows the fertility rate (the number of births per woman) as of 2021.

The population density of the Gaza Strip is 6,019 (Chart 2B), making it one of the densest places in the world. Only four other places are more densely populated than Gaza — Macao, Monaco, Singapore, and Hong Kong. 

Chart 2B | The chart shows population density (people per sq. km of land area).

With a huge population, most of them children, the burden on adults to provide for them is very high. However, due to the poor presence of industry, Gaza suffers from chronic unemployment. More worryingly, only a small share of the population is even looking for jobs. The labour force participation rate (percentage of the total population aged 15+ who were employed or looking for work) in the West Bank and Gaza in 2021 was 43%. If only the Gaza Strip is considered, it was even lower at 35%. These figures were among the lowest in the world. And of them, only a small fraction was employed. In the West Bank and Gaza, the unemployment rate was 26% in 2021. In Gaza, it was 45% (Chart 3A).

Click to subscribe to our Data newsletter

Chart 3A | The chart shows unemployment as a share of the total labour force.

Chart 3B | The chart shows the labour force participation rate.

While over 16,000 people are injured in Gaza, the region only has 13 hospital beds per 10,000 population (Chart 4A), among the lowest in the world. It hints at the possibility of the death toll increasing much further given that the wounded may not get adequate treatment.

Chart 4A | The chart shows the number of hospital beds per 10,000 people. 

Chart 4B | The chart shows the number of doctors per 10,000 people.

Chart 5 | The chart shows the daily water consumption in litres per capita per day.
With inputs from AP, AFP and Reuters. This is the first of a three-part Data Point series on the Israel-Hamas conflict.

Source: World Bank, World Health Statistics 2023, Atlas of Sustainable Development 2023 and Palestinian Central Bureau of Statistics

Also read | Israel-Gaza war: Thousand dead, thousands displaced | Data

Listen to our podcast | How Turkey’s economic and political trajectory compares to India | Data Point podcast