Lebanon's Economy Braces for Massive Fallout Amid Israel-Hezbollah Conflict

A UN report anticipates a 9% drop in Lebanon's GDP due to the ongoing conflict between Israel and Hezbollah, exceeding the impact of the 2006 war. The crisis threatens widespread economic, social, and environmental consequences, prompting calls for increased international aid.

The United Nations predicts a grim economic forecast for Lebanon as the conflict with Hezbollah is set to slash 9% from the nation's GDP. This anticipated loss surpasses the devastating impact of the 2006 conflict, as reported by the U.N. Development Programme.

The ongoing hostilities are expected to inflate the Lebanese government's financial needs by 30%, further deepening the country's already precarious economic situation. The conflict is projected to extend into late 2024, with its economic repercussions enduring for years, potentially contracting GDP by 2.28% in 2025 and 2.43% in 2026.

Lebanon's severe infrastructure damage, job losses in key sectors, and environmental degradation highlight the conflict's widespread impacts. Consequently, international aid will be crucial to meet immediate humanitarian needs and support long-term recovery efforts.

(With inputs from agencies.)