Economic Indicators

Israel-Hezbollah conflict cost Lebanon $8.5 billion, World Bank says

2024.11.14 12:32

By Clauda Tanios

DUBAI (Reuters) – The World Bank said on Thursday the ongoing conflict between Israel and Hezbollah has caused $8.5 billion in damage and losses to Lebanon, with final figures expected to be significantly higher as the conflict continues.

Ignited by the Gaza war, the conflict had been rumbling on for nearly a year before Israel went on the offensive in September, pounding Lebanon with airstrikes and sending troops into the south.

Lebanon faces estimated economic losses of $5.1 billion over 12 months, driven primarily by heavy impacts on commerce, tourism, and agriculture.

Direct physical damage in Lebanon amounts to at least $3.4 billion, the Damage and Loss Assessment conducted by the World Bank said.

The analysis projects Lebanon’s real GDP will contract by at least 5.7% in 2024 due to the conflict, compared to a 0.9% growth in a scenario without the conflict, a heavy toll for a country still reeling from the effects of a financial collapse five years ago.

“This compounds five years of sustained sharp economic contraction in Lebanon that has exceeded 34% of real GDP, losing the equivalent of 15 years economic growth,” the World Bank said.

Housing is the sector with the most reported damage, estimated at $2.8 billion, with over 99,000 housing units partially or fully damaged, according to the World Bank.

Agriculture, which has been particularly affected in the southern regions of Lebanon, lost over $1.1 billion over 12 months, driven by lost harvest caused by destruction of crops and livestock and displacement of farmers, the report said.

Commerce accounted for $178 million in damage, with economic losses estimated at $1.7 billion, the education sector losses are estimated at $215 million, while the environment has incurred $221 million in damage, it added.

© Reuters. People ride a scooter past damaged buildings, in the aftermath of Israeli strikes on Beirut's southern suburbs, during a Hezbollah media tour, amid the ongoing hostilities between Hezbollah and Israeli forces, Lebanon, November 9, 2024. REUTERS/Mohamed Azakir/File Photo

The health sector has suffered losses estimated at $338 million, while tourism and hospitality, one of Lebanon’s main economic drivers, have incurred losses of $1.1 billion, according to the World Bank report.

The conflict is having broader social and environmental implications in Lebanon and has exacerbated food insecurity, the report said.



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 87,321.40 2.89%
ethereum
Ethereum (ETH) $ 3,087.75 3.21%
tether
Tether (USDT) $ 0.995008 0.74%
solana
Solana (SOL) $ 211.53 1.43%
bnb
BNB (BNB) $ 630.55 2.26%
dogecoin
Dogecoin (DOGE) $ 0.378869 3.64%
xrp
XRP (XRP) $ 0.82436 19.44%
usd-coin
USDC (USDC) $ 0.996607 0.54%
staked-ether
Lido Staked Ether (STETH) $ 3,077.36 3.50%
cardano
Cardano (ADA) $ 0.585205 1.00%
tron
TRON (TRX) $ 0.177993 0.57%
shiba-inu
Shiba Inu (SHIB) $ 0.000024 5.03%
the-open-network
Toncoin (TON) $ 5.33 1.39%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,664.93 2.83%
avalanche-2
Avalanche (AVAX) $ 31.64 4.15%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 87,322.40 2.43%
sui
Sui (SUI) $ 3.34 1.98%
pepe
Pepe (PEPE) $ 0.000021 8.28%
weth
WETH (WETH) $ 3,094.24 2.95%
bitcoin-cash
Bitcoin Cash (BCH) $ 419.96 4.22%
chainlink
Chainlink (LINK) $ 13.17 2.25%
polkadot
Polkadot (DOT) $ 4.87 4.03%
leo-token
LEO Token (LEO) $ 7.42 2.18%
near
NEAR Protocol (NEAR) $ 5.41 4.96%
litecoin
Litecoin (LTC) $ 82.69 9.47%
aptos
Aptos (APT) $ 11.27 3.93%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,251.21 3.14%
usds
USDS (USDS) $ 0.991879 1.08%
uniswap
Uniswap (UNI) $ 8.34 3.44%
crypto-com-chain
Cronos (CRO) $ 0.153664 8.55%
stellar
Stellar (XLM) $ 0.137977 11.14%
internet-computer
Internet Computer (ICP) $ 8.06 4.77%
dogwifcoin
dogwifhat (WIF) $ 3.79 9.19%
kaspa
Kaspa (KAS) $ 0.146623 14.67%
bittensor
Bittensor (TAO) $ 498.58 6.83%
ethereum-classic
Ethereum Classic (ETC) $ 22.31 1.50%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.26 1.47%
dai
Dai (DAI) $ 0.995948 0.63%
whitebit
WhiteBIT Coin (WBT) $ 22.00 1.65%
ethena-usde
Ethena USDe (USDE) $ 0.997615 0.52%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.363328 2.75%
blockstack
Stacks (STX) $ 1.83 5.26%
monero
Monero (XMR) $ 145.67 2.41%
render-token
Render (RENDER) $ 6.70 4.75%
bonk
Bonk (BONK) $ 0.000038 3.21%
okb
OKB (OKB) $ 43.74 0.12%
hedera-hashgraph
Hedera (HBAR) $ 0.065935 11.44%
aave
Aave (AAVE) $ 160.52 7.32%
mantle
Mantle (MNT) $ 0.713245 1.00%
first-digital-usd
First Digital USD (FDUSD) $ 0.994136 0.83%