Lebanon Faces $20 Billion Losses Due to Israeli Aggression
Lebanon's Economy and Trade Minister, Amin Salam, announced on November 29, 2024, that the economic losses incurred by the country due to the recent Israeli military actions are estimated to be between $15 billion and $20 billion. This figure is based on preliminary assessments and may change following a ceasefire and subsequent field surveys in affected regions, including the south, Bekaa Valley, and Beirut. The ceasefire, which began on November 22, 2023, marked the end of intense hostilities that started on October 8, 2023.
Before the escalation of violence, Lebanon's losses were projected at around $10 billion, particularly impacting sectors such as tourism and agriculture. However, as the conflict intensified, Salam noted that daily losses surged into the hundreds of millions of dollars due to widespread destruction and disruption of economic activities. The conflict has resulted in significant human tolls, with 3,961 reported deaths and over 16,500 injuries, including many women and children. Approximately 1.4 million people have been displaced across Lebanon, exacerbating the humanitarian crisis.
Reconstruction and International Support Needed
In light of the extensive damage, Minister Salam emphasized the urgent need for international support to facilitate Lebanon's reconstruction efforts. He stated that the country requires between $15 billion and $20 billion to rebuild and revitalize its economy. Salam highlighted the necessity of restoring governmental functions, which includes electing a new president, a process that has stalled since former President Michel Aoun's term ended in October 2022 due to political disagreements.
The minister mentioned that Lebanon needs at least $3 billion to $5 billion in the initial phase of reconstruction, which is expected to begin in the first quarter of 2025. This funding would support the military, address emergency needs, and facilitate the return of displaced citizens. Salam warned of the potential for further escalation if a peaceful period is not achieved, stressing the importance of regional stability for lasting peace. He also pointed to the critical role of Turkey as a partner in Lebanon's recovery and economic revitalization.
Lebanon has been grappling with a severe economic crisis since 2019, described by the World Bank as one of the most severe globally, which has been further aggravated by the recent conflict.
