The World Bank estimates the cost of physical damages and economic losses caused by the conflict between Israel and Hezbollah in Lebanon at $8.5 billion. A report published by the Bank provides an initial assessment of the consequences for the economy and key sectors of the country.
According to the Lebanon Damage and Loss Assessment (DaLA), damages to physical structures amount to $3.4 billion, while economic losses reach $5.1 billion. The hostilities have left more than 3,300 dead in Lebanon, mostly in the last two months of the conflict.
In economic terms, the conflict has reduced Lebanon's real GDP growth by at least 6.6% in 2024, adding to the five years of economic contraction that have exceeded 34% of GDP. More than 875,000 people are internally displaced in the country, with the most vulnerable groups being women, children, the elderly, people with disabilities, and refugees.
The report notes that 166,000 people have lost their jobs due to the conflict. The most affected sectors include housing, trade, and agriculture. Nearly 100,000 buildings have suffered damages equivalent to about $3.2 billion in losses. Trade has experienced disruptions valued at nearly $2 billion, while agriculture has suffered losses and damages of approximately $1.2 billion.
The World Bank's assessment is based on data and analysis from seven key sectors in the most affected governorates by the conflict. A broader assessment of damages and needs is planned for the future, which will take into account the economic and social losses for the reconstruction and recovery of Lebanon.
