Hayek warns of the repercussions of the suspension and paralysis of the facilities of economic life in Gaza

President of the Businessmen Association in the Gaza Strip and vice president of the Palestinian Federation of Industries warned today, Monday, of the repercussions of the suspension of all economic life facilities in Gaza and their paralysis due to the worsening of the closure and the tight blockade on the Gaza Strip for the second week Straight.

Hayek said in a press statement, that preventing the entry of various materials necessary for the activity of the industrial, services and health sectors threatens serious repercussions on the strategic stock of basic needs and threatens food insecurity and high unemployment and poverty rates.

Hayek explained that nearly 2000 industrial establishments in the Gaza Strip have been completely affected by the escalation of the electricity crisis and the station's suspension of work, so that the proportion of employment and its market share has decreased by about 60%, and its fixed assets and profit margin have decreased by about 50%, and the impact on the cost has reached 50%. Production alone is about 200% in some sectors, such as the construction industries.

He pointed out that the occupation’s preventing the entry of building supplies and materials warns of an inflation rate in the Gaza Strip, which ranges between 50 and 55 percent, and threatens to increase the prices of materials that are scarce in the local market due to the increase in demand compared to the small quantities that enter the Strip.

Hayek warned of the serious impact of the closure of the Kerem Shalom crossing on Palestinian exports, which threatens to raise unemployment rates, affect factories and other sectors, and decline economic activity due to the suspension of exports.

Hayek called for the necessity to neutralize the Gaza economy and the needs of the population from politics, appealing to all responsible parties for the necessity of pressure to lift the siege and end the suffering of more than 2 million Palestinians living in the Strip.

 

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