The recent attacks in Gaza are anticipated to plunge Lebanon’s economy into recession once again, as outlined by the World Bank on Thursday.
Lebanon’s border with Israel has faced multiple attacks since the October 7 incidents, contributing to the grim economic outlook. Prior to October 2023, the World Bank had projected a slight expansion of Lebanon’s economy in 2023 by 0.2%, marking the first growth since 2018. The projected growth was primarily reliant on summer tourism and remittances from the substantial Lebanese diaspora.
However, the ongoing conflict and its repercussions on Lebanon are expected to swiftly reverse the meager growth projected for 2023, leading the economy back into recession, according to the World Bank. The primary factor contributing to the economic downturn is a decline in tourism, with more than half of winter holiday travel reservations to Lebanon already canceled.
The World Bank’s report indicates that real gross domestic product (GDP) is anticipated to decline to a range of -0.6% to -0.9%, contingent on the severity of the tourism shock.
The Israeli attacks on Lebanon have resulted in the loss of over 140 lives, exacerbating the economic challenges faced by the country.
