The World Bank reported Thursday that more than a year of escalating clashes, which have now devolved into war, has cost Lebanon over $5 billion in economic losses and caused significant damage to nearly 100,000 homes.
Since Sept. 23, Israel has intensified its air campaign in Lebanon, later deploying ground troops after nearly a year of limited cross-border exchanges initiated by Hezbollah in response to the latest Gaza conflict.
The World Bank’s report provided damage estimates for the period between Oct. 8, 2023, and Oct. 27, 2024, stating that "the conflict has caused $5.1 billion in economic losses," with physical damage to structures amounting to "at least $3.4 billion" on top of that.
The losses are "largely concentrated in the commerce, tourism, and hospitality sectors... as well as in the agriculture sector," the report said.
"The final cost of damage and losses for Lebanon associated with the conflict is expected to significantly exceed those presented in this assessment," the report added.
The conflict has also "damaged an estimated 99,209 housing units," mainly in Lebanon's war-torn south near the border with Israel, totaling $2.8 billion in damages.
Eighty-one% of the damaged and destroyed homes are located in the Tyre, Nabatiyeh, Saida, Bint Jbeil, and Marjayoun districts.
The World Bank estimates that the conflict will cut Lebanon's real GDP growth for 2024 by at least 6.6%.
Lebanon had already been reeling since 2019 from a severe economic crisis that pushed most of the population into poverty.
"This compounds five years of sustained sharp economic contraction in Lebanon, which has exceeded 34% of real GDP, effectively losing the equivalent of 15 years of economic growth," the World Bank said.
