The World Bank has released a preliminary assessment of the economic toll of the ongoing conflict between Lebanon and Israel, estimating that material damage and economic losses have amounted to approximately $8.5 billion.
- This figure, reported by Shafaq News, highlights the severe impact the war has had on Lebanon’s already fragile economy, which has been grappling with years of decline.
- The assessment, which covers the period of intense fighting since October 2023, details the extensive damage to infrastructure, housing, and key economic sectors.
- According to the World Bank Group (WBG), physical damage to infrastructure alone is valued at $3.4 billion, while the broader economic losses, including disruptions to businesses, agriculture, and employment, have reached $5.1 billion.
- The effects on Lebanon’s GDP are equally dire, with the World Bank forecasting that the conflict will reduce the country’s real GDP growth by at least 6.6% in 2024.
- This follows a steep contraction in Lebanon’s economy, which has shrunk by more than 34% over the past five years due to a combination of political instability, financial crises, and the regional conflict.
- The war has compounded these challenges, deepening the economic slump and making recovery more elusive.
