World Bank says Lebanon needs $11 bn for post-war reconstruction
WorThe World Bank on Friday estimated Lebanon's recovery and reconstruction costs at $11 billion following the war between Israel and Hezbollah, which ended with a ceasefire last November.
"Reconstruction and recovery needs following the conflict that affected Lebanon are estimated at US$11 billion," the World Bank said in a report assessing damage and losses from October 8 to December 20, 2024.
The report put the war's total economic cost at $14 billion, including $6.8 billion in damage to physical structures and $7.2 billion in economic losses from reduced productivity, forgone revenues and operating costs.
The Lebanese housing sector was the hardest hit, with losses estimated at $4.6 billion, while the tourism sector lost $3.6 billion.
"The impacts of the conflict have resulted in Lebanon's real GDP contracting by 7.1 percent in 2024, a significant setback compared to a no-conflict growth estimated at 0.9 percent," the World Bank said.
"By the end of 2024, Lebanon's cumulative GDP decline since 2019 approached 40 percent, compounding the effects of the multi-pronged economic downturn and impacting Lebanon's prospects for economic growth."
Israel and Hezbollah were involved in over a year of cross-border hostilities, including two months of open war, which ended with a ceasefire on November 27.
The fighting destroyed vast swathes of Hezbollah's strongholds in the country's south and east, as well as Beirut's southern suburbs.
Even before the war began, Lebanon was in the throes of an unprecedented economic crisis.
The war dealt devastating blows to Hezbollah, the weakening of which helped pave the way for the appointment of a new president and government after a two-year power vacuum.
Source: Agence France Presse
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