The President of the Lebanese Economic Organizations, former Minister Mohamed Choucair, sounded the alarm on Wednesday, highlighting the “dramatic deterioration of the economic situation in Lebanon, since the Hamas-Israel war broke out, compounded by heightened tensions in the South.”
According to Choucair, all sectors of the national economy are affected by the prevailing atmosphere of war in the country, threatening their “collapse, after four years of economic and financial crisis.” “What the crisis couldn’t do in four years is now happening continuously, threatening to eliminate the Lebanese private sector and plunging the national economy and the country into the abyss.”
“The profits made by the economic sectors during the summer season are currently being exhausted,” he warned.
Choucair based his statements on data, figures and statistics collected from stakeholders in various economic sectors. The findings are as follows:
– In the commercial sector, the demand for food products and essential goods remains the same, occasionally increasing due to consumers’ tendency to stock up. However, demand for luxury goods and products have declined by 50 to 70%.
– The restaurant sector has witnessed a significant contraction, with restaurant activity decreasing between 80 and 90%, and nightlife activity by 90%.
– The hotel industry is similarly affected, with occupancy rates currently estimated at most between 5 and 10%, with some hotels completely empty.
– The car rental sector has decreased by over 90%.
– The events and conferences sector has seen the cancellation of most bookings, activities and conferences.
– The industrial sector has been affected by the anxiety and anticipation prevailing in Lebanon and neighboring countries. New foreign orders have been particularly affected. Overall, the impact on the industrial sector’s activity since the start of military operations is around 30 to 35%.
– The maritime transport sector through the port of Beirut has recorded a decrease in imports of new non-petroleum goods and the suspension of certain export contracts.
– The insurance sector has also contracted, especially concerning insurance policies on goods (import and export). Additionally, clients have stopped making advance payments to companies due to individuals’ tendency to hold onto cash.
– Arrivals at Beirut airport have decreased by 33% in the last ten days, while departure traffic has increased by 28%. It’s important to note that, while overall airport traffic has been maintained, in relation to economic activity, arrivals traffic has declined.
Choucair concluded by urging the State and relevant political forces to “work to prevent the situation from deteriorating further.”
