File photo of Gaza City. PHOTO: REUTERS
Sahar Othman, 20, was shot by Israeli forces in the chest near Rafah in southern Gaza, the ministry said in a statement.
Palestinians have been gathering for weekly demonstrations at various points along the border since March 2018.
The protests are demanding Israel end a crippling blockade of the strip and allow Palestinians to return to lands they fled in the 1948 war that founded the Jewish state.
Israel says any such return would mean an end to the Jewish state and accuses the strip's militant rulers Hamas of orchestrating the protests.
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A further 32 Palestinians were shot and wounded in Friday's demonstrations, the ministry said.
An Israeli military spokesman said around 7,000 "rioters and demonstrators" gathered in multiple locations, with participants hurling rocks and explosives towards troops.
At least 309 Palestinian have been killed by Israeli fire in Gaza since the protests began, the majority during the demonstrations.
Eight Israelis have been killed in Gaza-related violence over the same period.
Israel and Hamas have fought three wars in and around Gaza since 2008.
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