Lebanon faces severe economic repercussions from escalating violence between Hezbollah and Israel, with losses exceeding $5 billion within a year, as reported by the World Bank. The conflict, which started on October 8, 2023, has damaged around 99,209 homes, inflicting nearly $3.4 billion in repair costs. Casualties are mounting due to Israeli airstrikes, while military actions intensify in both Lebanon and Syria, raising concerns over civilian safety amid ongoing hostilities.
The Economic Toll of the Ongoing Conflict
Lebanon, already grappling with a severe economic crisis, has suffered staggering “economic losses” exceeding five billion dollars within just one year due to escalating violence between Hezbollah and Israel. This alarming statistic was revealed by the World Bank in a recent report.
Since the onset of hostilities on October 8, 2023, the conflict has inflicted significant damage, affecting roughly 99,209 homes with repair costs estimated at nearly 3.4 billion dollars. The ramifications of this conflict extend far beyond immediate destruction, impacting various sectors crucial to Lebanon’s economy.
Casualties and Military Actions Intensify
The Israeli military has continued its airstrikes on southern and eastern Lebanon, resulting in the deaths of over 40 individuals, including women and Civil Defense members, according to local health officials and rescue teams. This violence escalated after Hamas launched an attack on Israel on October 7, 2023, prompting Hezbollah to engage in hostilities in support of its Palestinian ally.
The exchanges of fire have predominantly involved Hezbollah launching rockets and drones from its stronghold in southern Lebanon towards northern Israel, while the Israeli army has retaliated with air raids targeting Hezbollah positions. Following its campaign against Hamas in Gaza, the Israeli military has shifted its focus to intensifying operations in Lebanon since September 23.
The World Bank’s analysis covers the period from October 8, 2023, to October 27, 2024, highlighting that the conflict has resulted in “economic losses of 5.1 billion dollars,” with the trade, tourism, hospitality, and agriculture sectors bearing the brunt of the damage.
Of the nearly 99,209 damaged homes, 18% have been completely destroyed, with the majority of affected households located in southern Lebanon, near the border with Israel. The World Bank further noted that Lebanon is effectively “losing the equivalent of 15 years of economic growth” amidst the ongoing crisis and conflict that has plagued the country since 2019.
Israel’s stated goal is to neutralize Hezbollah’s influence in southern Lebanon, allowing the safe return of around 60,000 residents displaced from northern Israel. However, Hezbollah continues to launch rockets, although many are intercepted by Israeli defense systems.
On Thursday, Israeli strikes targeted Hezbollah strongholds in various locations, including the southern suburbs of Beirut and the city of Baalbek, resulting in multiple casualties, including civilians and rescuers. The Israeli military has also been conducting ground offensives aimed at dismantling Hezbollah’s military capabilities.
Amidst these developments, American diplomatic officials have expressed concern over the Israeli military actions in densely populated areas, emphasizing the need for restraint to prevent further civilian casualties.
In addition to the conflict in Lebanon, Israeli airstrikes have intensified in neighboring Syria, resulting in significant casualties in residential areas, including the deaths of at least 20 people in recent raids, as reported by local monitoring organizations.