Lebanon suffers USD20 billion in losses due to ongoing war

(MENAFN) Lebanese Economy Minister Amin Salam stated on Tuesday that the losses Lebanon has incurred due to the ongoing war have now reached USD20 billion. In an interview with Al Arabiya, he highlighted that the country's infrastructure had been destroyed and more than 500,000 job opportunities were lost. The severe damage to both physical infrastructure and the labor market has had a profound impact on the economy.

Salam also discussed the efforts of American mediator Hochstein, who recently visited Lebanon as part of the truce negotiations. Salam noted that Hochstein had opted to stay in Lebanon and continue working toward a positive resolution, reflecting the United States' commitment to achieving a settlement and addressing the crisis.

The United Nations had previously warned that the conflict could further worsen Lebanon’s already deteriorating economy. According to reports from a French news agency, the UN predicted that Lebanon’s GDP could shrink by 9.2 percent in 2024 if the war persists. This warning came amid a broader crisis that has already significantly strained the country’s economic stability.

Additionally, Standard & Poor’s credit rating agency expressed concerns that the escalation of the conflict between Israel and Hezbollah has severely undermined the prospects for Lebanon's economic recovery. The agency forecasted that the ongoing military tensions would continue into next year, leading to substantial losses, particularly through increased displacement and reduced tourism revenue. The conflict is also expected to delay essential economic and financial reforms, further impeding long-term recovery efforts for Lebanon.

MENAFN21112024000045015839ID1108909438