"In the period 2006–2022, the population of Gaza grew by 61%, but GDP grew by only 1.1% and real GDP per capita shrank by 27%, from $1,994 in 2006 to $1,257 in 2022, compared with $2,923 and $4,458 in the West Bank, respectively," the UNCTAD said in the report on its assistance to the Palestinian people.
During the same period, the Gaza Strip saw a 157% increase in the number of unemployed workers, with unemployment rising to 45.3% from 34.8%. Meanwhile, restrictions on the domestic market caused structural changes in the enclave's economy, the report read.
"This ratio fell to 44% with the onset of the restrictions and closures in 2007 and reached an all-time low in 2021, at 27.7%. The economy of Gaza has undergone a significant structural distortion because of restrictions on movement, limited access to imported inputs, the destruction of the productive base and semi-autarkic isolation from domestic and global markets," the report read.
In 2007, after Palestinian movement Hamas seized control over the Gaza Strip, Israel imposed a blockade and reduced exports to the region to a humanitarian minimum, while completely banning imports from the enclave. The situation persisted for the next 16 years, although some of the restrictions were altered.