Ongoing Israel-Hamas War Threatens LebanonEconomic Recovery
World Bank predicts a contraction of Lebanon's GDP as conflict disrupts tourism and remittances, key drivers of the economy.
- Lebanon's economy, which was projected to grow by 0.2% in 2023, is now expected to shrink by -0.6% to -0.9% due to the ongoing Israel-Hamas war.
- Near-daily clashes between Hezbollah and Israeli forces along the Lebanon-Israel border have significantly impacted tourism, with the percentage of completed flights to Lebanon dropping from 98.8% to 63.3% between October and November.
- Lebanon's economic strategy heavily relies on tourism and remittances from abroad, both of which have been affected by the conflict.
- Lebanon reached a preliminary deal with the IMF in April 2022 for a $3 billion rescue package but has not completed most of the required reforms to finalize it.
- Caretaker Deputy Prime Minister Saade Chami stated that Lebanon had made 'no progress to speak of' in recent months on implementing the required reforms for the IMF deal.
Washington Post 
Associated Press 
