World Bulletin / News Desk
The Gaza Strip has incurred $500 million in losses since the Egyptian army launched a crackdown on a network of smuggling tunnels on the borders between the isolated Palestinian enclave and Egypt, a new study has concluded.
"Losses incurred by the Gaza Strip have proved catastrophic and unprecedented in scale," economist Maher al-Tabaa, the study's author, told Anadolu Agency on Monday.
The study concluded that the closure of the underground tunnels between Egypt and the Gaza Strip had brought economic activities to a standstill.
According to the study, the strip's gross domestic product (GDP) has dropped by 60 percent in the past five and half months.
It added that Gaza's construction sector, which relies heavily on construction materials smuggled via the underground tunnels, had come to a total halt.
The construction field is the biggest labor-absorbing sectors in Gaza and contributes about 27 percent of the strip's GDP (nearly $135 million).
The Egyptian military destroyed scores of tunnels along the border with Gaza following the July 3 ouster of elected president Mohamed Morsi.
Relations between Hamas – which governs the Gaza Strip – and Egypt's new military-backed rulers have deteriorated had also deteriorated since the overthrow of Morsi, a leader of Egypt's Muslim Brotherhood.
Egyptian media accuses Hamas, an ideological offshoot of the Brotherhood, of interfering in Egypt's internal affairs and supporting the Brotherhood in its ongoing faceoff with the army-installed interim administration.
Hamas has repeatedly denied both accusations.
Estimates show that unemployment rates have skyrocketed in Gaza to reach 32.5 percent in the third quarter of 2013.
"The unemployment rates are expected to hit 40 percent in the fourth quarter of the year," said al-Tabaa, the study's author.
The Gaza Strip, home to nearly two million Palestinians, has been reeling under a chocking Israeli blockade since 2006.
"This is the worst siege the world had seen and must be lifted to help revive the Gaza economy," stressed the economist.
"The current economic catastrophe has affected almost all aspects of daily life in the Gaza Strip."
Mohamed Hasanah, coordinator for the Organization of Islamic Organization (OIC), told AA that nearly 90 percent of infrastructure projects in Gaza had been halted.
According to an OIC study, between 70-80 percent of Gaza fishermen and about 80 percent of drivers have been driven jobless by an acute fuel shortage.
It concluded that access to potable water had been reduced by 40 percent with more than 57 of the strip's inhabitants in need for food supplies.
"The closure of the tunnels has led to a total collapse in all economic sectors in Gaza," Hasanah lamented.
According to the ratings agency Moody’s, Iran is fiscally and structurally well placed to come back into the global economic scene
PM Davutoglu meets the heads of the world's largest companies as he promotes Turkish economic interests at World Economic Forum
Fund cuts global growth forecasts for both 2016 and 2017 by 0.2 percentage points
'Runaway inequality has created a world where 62 people own as much wealth as the poorest half of the world’s population'
At a meeting in Vienna on Friday, the Organization of the Petroleum Exporting Countries decided against cutting output to raise prices
OPEC has agreed to raise its output ceiling to 31.5 million barrels per day
OPEC's poorer nations, led by Venezuela, want a cut to help boost prices
Move gives international recognition to renminbi, fund's Christine Lagarde says
Summit is expected to provide member states with opportunity to consult, exchange views on the most important issues concerning them in the framework of the Gas Exporting Countries Forum
Slowdown in Chinese economy, rising oil stocks in US, and oversupply from OPEC are all factors making price of oil lower
'World is more connected than ever before. More and more developing countries are seeking to join global trade networks,' WTO director-general says
European Central Bank is ready to use ‘all instruments available’ to stimulate the eurozone economy, Draghi says
Kazakhstan has overtaken Australia as the lead supplier of uranium for US reactors.
Depreciation of emerging market currencies, combined with low commodities prices, have made investors around the globe nervous