Both Economies Drained. Palestinians' Is Worse.
As night approached, the rumpled 50-year-old Palestinian baker said he was worried but not yet panicked by the closed border nearby. His supply of flour from a mill in Israel was dwindling, but not quite exhausted. "I've got 50 bags," he said. "Enough for one more day."

The Israeli Army's monthlong sealing of the border with the occupied territories was meant to thwart terror attacks, but it has also weakened an already reeling Israeli economy and left the Palestinian economy in shambles, experts say.

An Israeli policy of importing foreign workers from Romania, Thailand and other countries has eased dependence on Palestinian workers. Their inability to come to work in Israel has not harmed the Israeli economy as much as it did during the first intifada, or uprising, in the 1980's.

But this time, repeated Palestinian suicide bombings have all but eliminated Israel's tourism and discouraged foreign investment. Israeli officials say they have spent $5 billion to to $6 billion on security since clashes resumed 18 months ago. The economy is mired in recession, and the government is scrambling to raise taxes, cut stipends and increase deficit spending to control a ballooning budget gap.
http://www.nytimes.com/2002/04/30/international/middleeast/30GAZA.html