The study aims at understanding inter-relationships amongst various macroeconomic indicators in the Gaza Strip, including labour by sector, government consumption and revenues, foreign trade, national accounts, and production and prices. 27 behavioural equations involving over 200 variables are used to simulate a number of macroeconomic policies and evaluate their impact on Gaza's overall economic performance. One key finding is that unemployment will continue to rise under current conditions, and there is little economic return resulting from the Israeli redeployment. Indeed, under continued closure of borders and with employment in Israel falling to zero, conditions will worsen significantly.
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