Since the second intifada of September 2000 the West Bank and Palestine’s economy has greatly slowed. In response to security concerns, Israel placed many restrictions on West Bank damaging trade and labor relations. These tight economic restrictions have discouraged foreign investment in the area. The shrinking economy, despite large amounts of outside aid, has led to a rise in unemployment. The unemployment rate in the West Bank rose to 19% in 2008, and the unemployment rate in Gaza increased only slightly from 29.7% to 29.8%. However, a large amount of people have turned to unpaid labor, working as unpaid family laborers or in seasonal agriculture. Due to the crisis, poverty has continued to grow in Gaza. However, in the West Bank the poverty level has slightly decreased, falling from 22% in 2006 to 10% in 2007. The consumer price index of food increased by almost 30% in Gaza and by 21.5% in the West Bank between June 2007 and June 2008. Food insecurity continues to rise in WBG, despite the inflows of outside aid. Food insecurity increased to approximately 38% in 2007. However, food insecurity is an even greater issue in Gaza, where it reached 56%. Gaza’s private sector and industrial producers have been extremely damaged by the blockade. Businesses in Gaza have been prevented from both importing and exporting, as only humanitarian goods are now allowed into Gaza. Production is constantly halted due to fuel and power shortages. According to estimates by local business associations, less than 5% of industrial establishments are still functioning. The only remaining producers are food processors, who are able to come by local materials and inputs and are also allowed to import certain items based on humanitarian grounds. Because of the severity of damage to the economy, it is uncertain as to how many businesses will recover once the blockage has been lifted. Despite the above, there is optimisium that the West Bank / Gaza economy may manage a 5% growth in 2009. Should this happen, the majority of the growth is expected to be fueled by sectors in the West Bank as Gaza itself will most likely remain stagnate due to imposed restrictons. However, growth from the West Bank is heavily dependent on the fighting in Gaza. The fighting in Gaza must stop before it reaches the West Bank in order to avoid damaging industry and investor confidence.