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Lebanon Reconstruction and Recovery Needs Estimated at $11 Billion
World Bank Report on Lebanon’s Post-Conflict Damage
The World Bank has estimated that Lebanon requires $11 billion for reconstruction and recovery following the recent conflict with Israel. This assessment highlights the severe damage to Lebanon’s infrastructure and economy.
Economic Impact and GDP Contraction
The conflict, which lasted from October 8, 2023, to October 27, 2024, has caused significant economic and structural damage. Lebanon’s real GDP is projected to contract by at least 5.7% in 2024 due to the conflict, compared to a 0.9% growth estimate had the war not occurred. This downturn adds to an already prolonged economic crisis, which has led to a more than 34% contraction in real GDP over the past five years.
Housing and Infrastructure Destruction
The housing sector has been among the hardest hit, with over 99,000 housing units partially or fully damaged, amounting to $2.8 billion in losses. The destruction has exacerbated Lebanon’s ongoing housing crisis, displacing thousands of families.
Agricultural and Sectoral Losses
Agriculture in southern Lebanon has suffered extensively, with losses exceeding $1.1 billion due to the destruction of crops, livestock, and farmland. Other vital sectors, including commerce, education, health, and tourism, have also sustained severe damages, further hindering economic recovery.
Total Reconstruction Needs and Future Challenges
Beyond the initial $11 billion, the World Bank has identified an additional $12 billion in critical reconstruction and recovery needs. This brings Lebanon’s total estimated recovery cost to $26 billion, underscoring the scale of devastation. The international community’s support will be crucial in addressing these challenges and facilitating Lebanon’s path to recovery.
“Lebanon Reconstruction and Recovery Needs Estimated at $11 Billion” “Lebanon Reconstruction and Recovery Needs Estimated at $11 Billion”