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Lebanon finds itself once again at the heart of an exorbitantly costly conflict. The war between Israel and Hezbollah is not limited to military confrontation; it inflicts colossal damage on a country struggling to recover. Destroyed infrastructure, a paralyzed economy, and displaced populations — this conflict’s repercussions far exceed the frontlines, plunging Lebanon into an unprecedented spiral of losses.
The ongoing war between Hezbollah and Israel continues to ravage Lebanon’s infrastructure and economy. While it remains challenging to fully assess the damages and losses due to the continued bombardments, the impacts on trade and investment are significant. Local businesses are suffering from uncertainty and fear, leading to a severe decline in economic activity.
The World Bank reported that damage to physical infrastructure alone amounts to at least $3.4 billion, with economic losses estimated at $5.1 billion as of the end of their study. The final losses from the conflict are expected to be considerably higher as it continues to affect more sectors. The WB estimates that the conflict has reduced Lebanon’s real GDP growth for 2024 by at least 6.6%, compared to modest growth forecasts before the conflict. This comes on top of five years of sustained economic contraction, during which Lebanon lost over 34% of its real GDP — equivalent to 15 years of economic growth.
Caretaker Minister of Economy and Trade, Amin Salam, estimates Lebanon’s total economic losses from the current conflict at $20 billion. However, economists report direct losses of approximately $12 billion, encompassing damage to key sectors, homes, buildings, infrastructure, income loss and unemployment.
According to Information International, an independent research and consultancy firm based in Beirut, 40,000 homes have been completely destroyed in Lebanon due to the war, 25,000 partially damaged, and 122,000 have sustained minor damage — a total of 193,000 homes affected. Losses in the housing sector alone, as of mid-November, are estimated at around $4.3 billion.
In terms of energy and water, Caretaker Energy Minister Walid Fayad stated that damage caused by Israeli bombings amounts to nearly $440 million, with $120 million attributed to electricity and water networks. The remainder reflects urgent repair costs, infrastructure investments to accommodate displaced populations and uncollected bills.
For telecommunications, a report from the Ministry of Telecommunications revealed that damages to state-owned Ogero and mobile operators Alfa and Touch amount to roughly $67 million.
The restaurant sector has seen a 90% drop in revenue, placing it at severe risk, according to Khaled Naha, Vice President of the Restaurant Owners Syndicate. He described the losses as “staggering,” with the WB estimating losses in this sector at $1.097 billion.
The agricultural sector has been hit hardest. Caretaker Minister of Agriculture Abbas Hajj Hassan reported that 70% of agricultural land has been devastated, based on aerial surveys conducted by the FAO and his ministry. He noted that precise losses are difficult to assess due to ongoing attacks affecting hundreds of villages from Baalbeck-Hermel to the South. Agricultural losses alone exceed $2 billion, though this figure is theoretical since tests on affected lands have not been conducted due to the potential deep damage caused by white phosphorus used by Israel.
The Ministry of Agriculture reported 1,518 fires that have destroyed over 3,220 dunams (about 800 acres) of forests, farmland, olive groves and other plantations. The numbers are alarming: 712 villages bombarded, 70,000 dunams of agricultural land damaged, more than 2,000 greenhouses, over 60,000 olive trees and more than 5,000 other trees (including oak and over 55% of pine trees) destroyed. Additionally, 35% of fruit trees have been burned, and 10% of aromatic herbs (parsley, mint, coriander) have been damaged.
Tobacco farmers are also unable to plant this year due to limited access to their fields. Tobacco production, approximately two million kilograms annually, accounts for 55% of Lebanon’s national production and generates over $10 million in revenue.
In the fruit and citrus sector, the South alone generates 72% of its revenue ($16.25 million out of $22.5 million total), producing 22% of Lebanon’s fruits and citrus and 38% of its olives. The region also supplies 5,000 of the 25,000 tons of olive oil produced annually in Lebanon. Bombardments could reduce up to a fifth of Lebanon’s olive production profits, valued at nearly $23 million.
The destruction extends to livestock, with over 25,000 animals and one million poultry killed. Additionally, 5,200 beehives have been destroyed, with 20,000 partially damaged. Twenty-four farms and 10,000 square meters of livestock feed storage have also been targeted.
A comparison of current human and material losses in the ongoing conflict between Hezbollah and Israel with those of the July 2006 war reveals that the current losses have more than doubled.
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