World Bank report warns Gaza Strip economy is in ‘free fall

JERUSALEM – The World Bank says the Gaza Strip’s economy is in “free fall” and is calling for urgent action by Israel and the international community.

In a report released on Tuesday, the World Bank says Gaza’s economy contracted by 6 per cent in the first quarter of 2018. It says unemployment is now over 50 per cent — and over 70 per cent among Gaza’s youth.

It cited various factors, beginning with Israel’s decade-long blockade against the territory’s Hamas rulers. It also cited budget cuts by the rival Palestinian Authority and a reduction in international aid to the Palestinians, particularly from the United States.

Marina Wes, the bank’s regional director, says “a combination of war, isolation, and internal rivalries has left Gaza in a crippling economic state and exacerbated the human distress.”