Impact Israel Hezbollah Conflict in Economic Lebanon
Salam’s stark warning comes as the humanitarian crisis intensifies, costing Lebanon an estimated $135 million monthly.
The situation is compounded by Israel‘s relentless air assaults—the most intense since 2006—which have displaced nearly 500,000 people.
This escalating conflict not only threatens the physical safety of Lebanese citizens but also exacerbates an already fragile economy that has been in a state of decline since the financial crisis struck in 2019.
The impact of the war is visible on multiple fronts. The Lebanese economy, which has seen its GDP plummet from nearly $52 billion in 2019 to approximately $23.1 billion in 2021, is grappling with overwhelming financial stress.
The World Bank has characterized Lebanon’s economic collapse as one of the worst crises in modern history. The 2020 Beirut port explosion, coupled with ongoing political deadlock, has left the nation reeling. Now, as hostilities resume with a vengeance, Lebanon finds itself grappling with a perfect storm of crises.
On Tuesday, Minister Salam emphasized the urgent need for diplomatic resolutions, indicating that the next 24 hours could be crucial in determining the direction of the conflict.
“Today, we’re hearing that a diplomatic resolution is being worked on, which should yield either a negative or positive outcome within the next 24 hours,” he stated, underscoring the gravity of the situation.
He called for immediate political action at a regional level to halt the fighting in both Gaza and Lebanon, warning that the situation could spiral out of control if not addressed promptly.
The humanitarian needs in Lebanon are growing exponentially. Thousands of people are fleeing their homes in southern and eastern regions under bombardment from Israeli forces.
The bombings have resulted in “endless” humanitarian needs that Lebanon is ill-equipped to meet. According to Salam, the displaced individuals require everything from medical supplies to food and hygiene products. “A safe and clean environment is also essential,” he added, highlighting the dire living conditions faced by many Lebanese citizens.
With many people seeking shelter in schools and public buildings in Beirut, the government’s ability to respond is increasingly strained.
Salam noted that the Lebanese government will need at least $135 million monthly to sustain its humanitarian efforts
“It will be a disaster if we don’t receive full assistance from donor countries, neighboring nations, and friendly states,” he warned.
So far, about 40 percent of Lebanon’s initial needs have been met through international donations, but the escalating crisis requires a concerted and immediate response.
As the conflict escalates, the financial repercussions are becoming more apparent. The agricultural sector, once a cornerstone of the Lebanese economy, has been decimated.
The tourism industry, which previously generated between $5 billion and $7 billion annually, has also been severely impacted. “We have lost a lot.
The two major sectors we relied on have been hit hard. There’s no growth, not to mention the loss of lives and the destruction of buildings, homes, institutions, and businesses,” Salam lamented.
The socio-political landscape in Lebanon is fragile. The year-long exchange of fire between Israel and Hezbollah has now turned into an all-out war, raising fears of a prolonged conflict that could deepen the humanitarian crisis.
The bombings since Monday have claimed nearly 600 lives, including more than 50 children. Hezbollah’s retaliation through missile attacks has further escalated the violence, intensifying the humanitarian toll.
Lebanon’s dire situation is a wake-up call for the international community. The country is in desperate need of a comprehensive strategy to address both the humanitarian and economic crises.
As Salam put it, “Lebanon doesn’t need much to recover. We can transition quickly, but we need at least stability and peace.”
The Minister’s comments underline the importance of swift diplomatic intervention. The window for a resolution is narrowing, and the consequences of inaction could be catastrophic.
The notion that Lebanon is at a “critical point” cannot be overstated. If the violence continues without resolution, the country will likely reach a point of no return, where recovery becomes increasingly difficult.
In conclusion, the dual crises stemming from the Israel-Hezbollah conflict threaten to destabilize Lebanon even further.
The combined effects of war, economic collapse, and humanitarian needs create a situation that is not only untenable but also potentially catastrophic.
As the world watches, the urgent call for diplomatic intervention and humanitarian aid is louder than ever. Lebanon stands at a crossroads, and the choices made in the coming days will shape the future of the nation and its people. The time for action is now.