War Exacerbates Lebanon's Economic Crisis with Job Losses and Soaring Prices

Lebanon's severe economic crisis has been significantly worsened by the 2024 war between Israel and Hezbollah, resulting in approximately $11 billion in additional losses, according to the World Bank. This compounds an existing $70 billion loss in the financial sector since 2019, which had already plunged half the population into poverty. Economy Minister Amer Bisat estimates the war caused a 7% drop in GDP due to business closures, job losses, and a collapse in tourism. The conflict has displaced 1.2 million people, primarily from southern Lebanon and Beirut's southern suburbs, further straining resources. Inflation is soaring as global tensions, including the closure of the Strait of Hormuz, drive up fuel and import costs. With the Lebanese pound losing over 90% of its value and electricity shortages persisting, citizens face existential economic challenges. Local businesses, such as Ayman al-Zain’s destroyed clothing store, struggle to rebuild amidst high prices and security fears. The situation represents a major shock to an already fragile economy plagued by years of corruption and mismanagement.