Economic Impact of Israeli Aggression on Lebanon
A recent report by the World Bank has revealed that the material damage and initial economic losses suffered by Lebanon due to Israeli aggression amount to approximately $8.5 billion. This figure includes $3.4 billion in material damage and $5.1 billion in economic losses, significantly impacting the country's ongoing economic crisis. The conflict is projected to reduce Lebanon's real GDP growth by at least 6.6% in 2024, exacerbating a severe economic contraction that has persisted for five years, with real GDP declining by over 34%.
The report highlights the dire humanitarian situation in Lebanon, with over 875,000 internally displaced persons and 166,000 job losses, leading to an income decrease of $168 million. The housing sector has been particularly hard hit, with around 100,000 housing units either completely or partially damaged, resulting in losses amounting to $3.2 billion. The trade sector also faced disruptions estimated at $2 billion, while the agricultural sector suffered losses of approximately $1.2 billion due to the destruction of crops and livestock.
Humanitarian Crisis and Future Projections
The United Nations has reported that 1.4 million people in Lebanon have been displaced due to the ongoing conflict, with more than 3,100 fatalities recorded. The humanitarian situation continues to deteriorate, with food security becoming increasingly precarious. Aid resources are reported to be insufficient, leaving many in urgent need of assistance.
Lebanese Economy Minister Amin Salam emphasized that the losses incurred from the Israeli strikes are incalculable, affecting not only southern Lebanon and the Bekaa Valley but also extending to the capital, Beirut. He noted that losses in the agricultural sector alone have exceeded $3 billion, while the tourism sector faces losses between $4 billion and $5 billion. The indirect economic losses, he stated, are vast, impacting domestic production and job opportunities, with long-term repercussions expected to be significant.
As the situation evolves, further assessments are anticipated to reveal even greater losses, underscoring the urgent need for international support and intervention.
