Lebanon's ongoing struggles are compounded by a dire economic crisis and escalating conflict. The country's GDP has plummeted from US$55 billion in 2018 to US$33 billion in 2020, reflecting a severe economic downturn exacerbated by the COVID-19 pandemic, which claimed around 10,000 lives [e150f538]. Mass protests erupted in October 2019, driven by widespread discontent over economic turmoil [e150f538]. The situation worsened following the catastrophic Beirut port explosion on August 4, 2020, which killed 218 people and left 300,000 homeless [e150f538]. Poverty rates surged from 12% in 2012 to 44% in 2024, with food inflation peaking at an alarming 483.15% in January 2022 [e150f538].
The recent conflict has further devastated Lebanon, with Israeli military actions since October 7, 2023, resulting in over 3,365 deaths in the country by November 13, 2024 [e150f538]. The situation escalated dramatically with the Israeli ground invasion of Lebanon, which began on October 1, 2024 [e150f538]. Hezbollah has demanded a complete ceasefire and the protection of Lebanon's sovereignty amidst these hostilities [e150f538]. The US has vetoed a UN ceasefire resolution for the fourth time, complicating efforts for peace [e150f538].
The UNDP has warned that if hostilities continue throughout 2024, Lebanon's economy could shrink by 9.2%, following a staggering contraction of 28% from 2018 to 2022 [e150f538]. Unemployment rates are projected to rise to 32.6%, affecting approximately 1.2 million workers [e150f538]. The economic fallout has led to significant declines in key sectors, including tourism, agriculture, and trade, with businesses reporting an 80% drop in customers [e150f538].
Lebanon's fragile infrastructure has been severely impacted, with disruptions in trade and investment leading to increased costs of imports and inflation [e150f538]. The financial crisis, which has seen the currency lose over 90% of its value since 2019, has left 80% of the population living in poverty [e150f538]. Despite the challenges, some business owners remain determined to support the economy, although they express concern for their employees and the future of their businesses [e150f538].
In response to the crisis, Saudi Arabia has provided $10 million in financial support to Lebanon for urgent development projects [e150f538]. The International Monetary Fund (IMF) has also reached an agreement with Lebanon for the implementation of economic policies that could unlock $3 billion, although reforms have been delayed [e150f538]. The European Union has announced a one billion euro financial package, and the World Bank has approved funding for public financial management and social safety net projects [e150f538].
As Lebanon navigates these tumultuous times, the resilience of its people is evident, yet the need for international support and a comprehensive approach to recovery remains critical [e150f538].