The ongoing Israeli war on Lebanon has led to significant economic losses estimated between $10 billion and $20 billion.
This range reflects the difficulty in accurately assessing the damage amid Israel’s ongoing military operations, including airstrikes and ground attacks.
The destruction of homes, infrastructure, and farmland has contributed to a state of uncertainty, along with an unprecedented wave of displacement affecting many families.
Experts agree that reliable economic data is hard to obtain while the conflict continues.
Reports from the Ministry of Health and international organizations said nearly 3,000 people have been killed and around 15,000 injured, mostly civilians.
Additionally, about 1.4 million people have been displaced from their homes, representing roughly a quarter of Lebanon’s population.
Growing economic crisis ahead
The war came at a time when Lebanon’s economy was already struggling after five years of crisis.
According to Mohammad Choucair, head of the Economic Bodies Association, the situation is worsening rapidly, threatening serious economic and social consequences.
Current estimates suggest that direct losses from the conflict could reach between $10 billion and $12 billion, impacting various sectors.
As the war continues, key sectors like tourism, agriculture, and trade are experiencing a sharp decline in business activity.
Many small and medium-sized enterprises are being forced to close or suspend operations due to direct damage from attacks, reduced consumer demand, and disruptions in trade and supply chains caused by the influx of displaced people.
International financial institutions are warning that the ongoing Israeli attacks could continue for several more months, possibly lasting until mid-2025.
The Institute of International Finance (IIF) forecasts a 7% contraction in Lebanon’s GDP by the end of this year, followed by a 10% decline next year.
This would bring the total economic decline to nearly 60% from the peak GDP of around $53 billion recorded at the end of 2018.
