WB: Israeli Siege broke Gaza economy

A new World Bank-supervised study of imports and exports through the Gaza Strip's reveals that "a dramatic collapse took place in the second half of [2007], causing unprecedented unemployment levels in the private sector, shut down of thousands of establishments and dramatic export and market losses."

Research and analysis by PalTrade – the Palestine Trade Center shows sharp downturns in a number of Gaza's industries as a result of Israel's hermetic closure of the Strip beginning on 12 June 2007.

At Karni terminal, the major crossing point for commercial goods, 5,746 truckloads were allowed through before 12 June, zero after.

Because virtually no construction materials have been allowed into the Strip, an estimated 223 million US dollars in construction projects are at a standstill, forcing employers to lay off 42,000 workers, the report said.

Gaza's furniture industry was allowed to export only 23% its total capacity.

"According to the Wood Industries Union," the report said "and as a result of the closure imposed on Gaza Strip since the 12th of June, 2007, the furniture sector suffered considerable losses of about $17 million as direct export sales losses, and about 95% of establishments were temporarily closed due to the continued absence of raw materials."

According to PalTrade, because garment workshops could not export their products, almost all the remaining shops were closed, and 2,000 workers laid off.

"The garment sector losses are estimated at $24 million as a direct potential export sales losses, in addition to the other indirect losses."