Lebanon suffers massive economic losses from conflict with Israel

Beirut - The conflict with Israel has caused losses of around $20 billion to the Lebanese economy and is hindering the country’s economic development, Lebanese Economy Minister Amer Bisat told RIA Novosti.

“The war has caused widespread damage, particularly in the southern part of the country. Losses are estimated at around $20 billion,” said Bisat.

In addition to direct damage, the economy has also suffered significant indirect losses, he added.

He stated that Lebanon’s economic volume has nearly halved compared to the pre-crisis period, dropping from $55-57 billion to approximately $32 billion.

As a result of the war, companies and factories have closed, about 28 per cent of agricultural land has completely ceased production, and the tourism sector has taken a serious hit, Bisat added.

Losses experienced by the tourism industry in Lebanon alone are estimated at around $2 billion, which is equivalent to about seven per cent of the country’s GDP, the minister explained.

Previously, on 2 March, the Hezbollah movement launched rocket and drone attacks against Israel amidst the US and Israeli conflict with Iran. In response, Israel conducted massive airstrikes against Hezbollah targets on the southern outskirts of Beirut, as well as in southern and eastern Lebanon, and launched ground operations in the south of the country.

Subsequently, on 16 April, US-mediated talks resulted in a ceasefire agreement, although Israel continues to carry out daily attacks against dozens of settlements in southern Lebanon, while Hezbollah has retaliated with attacks against Israeli forces.