Economy of Gaza

The economy of Gaza City was dependent on small industries and agriculture. After years of decline, economic growth in Gaza is now on the rise, boosted by foreign aid. According to the International Monetary Fund, the economy grew 20 percent in 2011, and the per capita gross domestic product increased by 19 percent.

In the 19th century, Gaza was among six soap-producing cities in the Levant, overshadowed only by Nablus. Its factories purchased qilw from merchants from Nablus and Salt in Jordan. Gaza's port was eclipsed by the ports of Jaffa and Haifa, but it retained its fishing fleet. Although its port was inactive, land commerce thrived because of its strategic location. Most caravans and travelers coming from Egypt stopped in Gaza for supplies, likewise Bedouins from Ma'an, east of the Wadi Araba, bought various sorts of provisions from the city to sell to Muslim pilgrims coming from Mecca. The bazaars of Gaza were well-supplied and were noted by Edward Robinson as "far better" than those of Jerusalem. Its principal commercial crop was cotton which was sold to the government and local Arab tribes.

Many Gazans worked in the Israeli service industry while the border was open, but in the wake of Israel's 2005 disengagement plan, Gazans could no longer do so. According to OXFAM, Gaza suffered from serious shortages in housing, educational facilities, health facilities, infrastructure, and an inadequate sewage system, contributing to serious hygiene and public health problems. Food prices rose during the blockade, with wheat flour going up 34% and rice up 21%. The number of poor Gazans increased sharply, with 80% relying on humanitarian aid in 2008 compared to 63% in 2006. In 2007, households spent an average of 62% of their total income on food, compared to 37% in 2004. In a decade, the number of families depending on UNRWA food aid increased ten-fold.

Increasing prosperity has led to the widespread replacement of donkey carts with tuk-tuks.

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