Part 270

Literacy: NA

Government ----------

Government note: Under the Israeli-PLO Declaration of Principles on Interim Self-Government Arrangements ("the DOP"), Israel agreed to transfer certain powers and responsibilities to the Palestinian Authority, which includes a Palestinian Legislative Council elected in January 1996, as part of interim self-governing arrangements in the West Bank and Gaza Strip. A transfer of powers and responsibilities for the Gaza Strip and Jericho has taken place pursuant to the Israel-PLO 4 May 1994 Cairo Agreement on the Gaza Strip and the Jericho Area and in additional areas of the West Bank pursuant to the Israel-PLO 28 September 1995 Interim Agreement. The DOP provides that Israel will retain responsibility during the transitional period for external security and for internal security and public order of settlements and Israelis. Permanent status is to be determined through direct negotiations within five years.

Name of country: conventional long form: none conventional short form: Gaza Strip local long form: none local short form: Qita Ghazzah

Data code: GZ

Economy -------

Economic overview: In 1991 roughly 40% of Gaza Strip workers were employed across the border by Israeli industrial, construction, and agricultural enterprises, with worker remittances supplementing GDP by roughly 50%. Gaza has depended upon Israel for nearly 90% of its external trade. Aggravating the impact of Israeli military administration, unrest in the territory from 1988 to 1993 (intifadah) raised unemployment and lowered the standard of living of Gazans. The Persian Gulf crisis and its aftershocks also dealt blows to Gaza since August 1990. Worker remittances from the Gulf states have dropped, unemployment has increased, and exports have fallen. The withdrawal of Israel from the Gaza Strip in May 1994 has brought a new set of adjustment problems. The stringent border restrictions have held back economic growth in 1995 and 1996.

GDP: purchasing power parity - $1 billion (1995 est.)

GDP real growth rate: 3%-4% (1995 est.)

GDP per capita: $1,200 (1995 est.)

GDP composition by sector: agriculture: 33% industry: 7% services: 60% (1995 est., includes West Bank)

Inflation rate (consumer prices): 14% (1995 est.)

Labor force: NA by occupation: construction 33.4%, agriculture 20.0%, commerce, restaurants, and hotels 14.9%, industry 10.0%, other services 21.7% (1991) note: excluding Israeli settlers

Unemployment rate: 30%-45% (1995 est.)

Budget: $NA

Industries: generally small family businesses that produce textiles, soap, olive-wood carvings, and mother-of-pearl souvenirs; the Israelis have established some small-scale modern industries in an industrial center

Industrial production growth rate: NA%

Electricity: power supplied by Israel

Agriculture: olives, citrus, other fruits, vegetables; beef, dairy products

Exports: $49 million (f.o.b., 1994 est.) commodities: citrus partners: Israel, Egypt

Imports: $339 million (c.i.f., 1994 est.) commodities: food, consumer goods, construction materials partners: Israel, Egypt

External debt: $NA

Economic aid: recipient: ODA, $NA note: $410 million (est.) disbursed from international aid pledges in 1995 (includes aid to West Bank)

Currency: 1 new Israeli shekel (NIS) = 100 new agorot

Exchange rates: new Israeli shekels (NIS) per US$1 - 3.1295 (January 1996), 3.0113 (1995), 3.0111 (1994), 2.8301 (1993), 2.4591 (1992), 2.2791 (1991)

Fiscal year: calendar year (since 1 January 1992)

Transportation --------------

Railways: total: NA km; note - one line, abandoned and in disrepair, little trackage remains