Lebanon faces $8.5 billion in war damages, economic losses, World Bank reports

2024-11-14T16:27:49+00:00

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Shafaq News/ The World Bank estimated, on Thursday, the cost
of material damage and economic losses at about 8.5 billion dollars, in a
preliminary assessment of the impact of the war with Israel on the Lebanese
economy and its main sectors.

According to an article by the World Bank Group (WBG), a
preliminary assessment of damage and losses in Lebanon concluded that physical
damage alone amounted to $3.4 billion and economic losses amounted to $5.1
billion.

In terms of economic growth, “the conflict is estimated to
have cut Lebanon’s real GDP growth by at least 6.6% in 2024. This compounds
five years of sustained sharp economic contraction that has exceeded 34% of
real GDP,” the article revealed.

It also addressed the
impact of the conflict on people in Lebanon, where it is estimated that there
are more than 875,000 internally displaced people, with women, children, the
elderly, people with disabilities, and refugees at greatest risk.

The WBG estimated
166,000 individuals have lost their jobs, corresponding to a loss of US$168
million in earnings.

The housing sector has
suffered the most, with nearly 100,000 units partially or completely destroyed,
resulting in damages and losses totaling $3.2 billion, the article mentioned.

Commerce has faced
disruptions nearing $2 billion, partly due to the displacement of employees and
business owners. In agriculture, the destruction of crops, loss of livestock,
and displacement of farmers have led to damages and losses of approximately $1.2
billion, the WBG added.

The Lebanon Interim
Damage and Loss Assessment draws on remote data sources and analytics to assess
physical damage and economic losses across seven key sectors. The damage
assessment covers the six most conflict-affected governorates, while economic
losses are assessed nationwide whenever data allows.

“Data collection was
finalized as of October 27th for four sectors covered (commerce, health,
housing, tourism/hospitality) and as of September 27th for the other three
(agriculture, education, environment),” the WBD explained.

The article further
pointed out that a full Rapid Damage and Needs Assessment (RDNA), evaluating
economic and social losses along with financing requirements for reconstruction
and recovery, will be conducted when conditions permit. It is anticipated that
the estimated costs of damages, losses, and needs from the comprehensive RDNA
will be notably higher than those of the interim assessment.

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