ALBAWABA - The United Nations, an international organization aimed at maintaining peace and security, developing friendly relations among nations, and fostering international cooperation, warned that Lebanon’s economy will shrink by 9.2% in 2024 due to the Israeli war.
Lebanon’s economy is suffering significantly
The UN stated that Lebanon’s economy is expected to shrink by 9.2% in 2024 due to the Israeli war and the fact that the country’s economy has been suffering since years.
According to Agence France-Presse (AFP), the United Nations warned that the ongoing conflict between Lebanon and Israel will affect the economy and lead to further crises. The UN expects the gross domestic product (GDP) to decline by 9.2% in 2024 if the fighting continues.
S&P expects the escalation between Israel and Hezbollah to continue into next year, which would result in more severe losses for the Lebanese economy, particularly due to increased displacement and declining tourism revenues. (Shutterstock)
UNDP Administrator, Achim Steiner, said: “Not only are the people of Lebanon facing the immediate threat to life, they are also facing rising poverty, mounting social instability and civil unrest. The impacts of the conflict on the economy and longer-term development in Lebanon are potentially very serious. What is most needed now is a ceasefire. Lebanon now needs committed support from the international community, and this assistance must include both immediate humanitarian aid and more comprehensive support to social, economic, and institutional stability.”
Ongoing conflict
It is worth mentioning that Israel escalated its air strikes on Hezbollah strongholds in the southern suburbs of Beirut, as well as in southern and eastern Lebanon, on September 23. Additionally, Israel began ground incursions into southern Lebanon at the end of September.
On the other hand, Standard & Poor's Global Ratings (S&P) stated that the ongoing escalations and conflict in Lebanon between Israel and Hezbollah will weaken the recovery prospects of Lebanon’s devastated economy.
S&P expects the escalation between Israel and Hezbollah to continue into next year, which would result in more severe losses for the Lebanese economy, particularly due to increased displacement and declining tourism revenues.
