The press release issued by the Palestinian Central Bureau of Statistics (PCBS) on 9 November 2023, highlighted the impacts of the Israeli siege on the Gaza Strip macroeconomic indicators. The press release reveals that over the past 17 years of siege, blockade, and starvation imposed on Gaza, the region has incurred substantial economic losses. It is estimated that Palestine's losses of GDP amount to a minimum of USD 35 billion, which is ten times the GDP of Gaza Strip. Before 2006, the Gaza Strip accounted for approximately 36% of Palestine's GDP, but due to the suffocating siege on all factors of production, its contribution has declined to around 17% in recent years, resulting in the erosion of the productive base.

The distorted structure of the Palestinian economy is evident in various economic activities. If Gaza’s share of GDP had remained at 36% during the years of the siege (2006-2022), the cumulative loss to the Palestinian economy would be approximately USD 35 billion. In 2022, Palestine's GDP was around USD 19 billion, compared to a minimum potential GDP of USD 23 billion if the siege on Gaza Strip were lifted.

The Israeli siege has also deprived the Palestinian economy of approximately USD 7 billion in tax revenues over the past 17 years. Sector-wise, internal trade activity suffered cumulative losses of about USD 9.5 billion, followed by industry activity with losses of approximately USD 5.5 billion, services activity with losses of around USD 4.9 billion, and construction with losses of about USD 2.1 billion. The tax revenues that were supposed to contribute to the Palestinian economy were unable to be utilized due to the siege.

For more details, please visit:

https://www.pcbs.gov.ps/site/512/default.aspx?lang=en&ItemID=4627