World Bank: Lebanon's Economic Losses Exceed $5 Billion due to War

Lebanon’s economic losses have exceeded $5 billion during more than a year of fighting between Hezbollah and Israel, according to the latest report issued by the World Bank on Thursday, noting that the escalation in Lebanon has damaged about 100,000 housing units.

The report issued on Thursday indicated that “the conflict caused economic losses worth $5.1 billion, in addition to material damages worth no less than $3.4 billion,” during the period extending from October 8, 2023 to October 27, 2024.

The report stated that the conflict caused damage to an estimated 99,209 housing units, of which 18% were completely destroyed, while 82% were partially damaged.

The report noted that among the 12 regions covered by the housing sector assessment, the regions of Tyre, Nabatieh, Sidon, Bint Jbeil and Marjeyoun are the most affected, accounting for about 81% of the estimated damages and losses.

The World Bank estimates that the conflict has reduced Lebanon’s real GDP growth in 2024 by at least 6.6%, noting that the final cost of damage and losses in Lebanon related to the conflict is expected to be significantly higher.

The International Monetary Fund (IMF) has estimated that the Lebanese economy will shrink by about 20% in the first half of 2024, and said in a report that further escalation in the conflict increases risks and uncertainty and could have significant economic repercussions for the region and beyond.

The ongoing war between the Lebanese Hezbollah group and Israel for more than a year is exacerbating five years of severe economic contraction in Lebanon, which has been in the grip of a severe economic crisis since 2019.

The economic risks are increasing after Israel intensified its raids on the party’s strongholds in southern Lebanon since September 23, 2024, and announced the start of “limited” ground operations a week later.

Since the exchange of fire between Hezbollah and Israel began on October 8, 2023, more than 3,360 people have been killed in Lebanon, most of them civilians, according to the Lebanese Ministry of Health.