New York [US], July 25: The United Nations on Thursday called for urgent and coordinated action to launch recovery efforts in Lebanon, warning that the country's protracted crisis is worsening under the combined impact of war and other compounding shocks.
In a joint report released today titled "The Socio-Economic Impact of the 2024 War on Lebanon," the UN Development Programme (UNDP) and the Economic and Social Commission for Western Asia (ESCWA), in collaboration with UNICEF, the International Labour Organisation (ILO), and UN-Habitat, revealed that the conflict in Lebanon displaced more than 1.2 million people, damaged or destroyed nearly 64,000 buildings, and interrupted education for hundreds of thousands of students.
The report highlighted that micro, small, and medium-sized enterprises - which make up 90 percent of Lebanon's economy - were among the hardest hit. About 15 percent of these businesses permanently closed, 75 percent suspended operations during the conflict, and nearly 30 percent lost their entire workforce.
In areas most heavily targeted by Israeli airstrikes, 70 percent of businesses were forced into full closure, the report said, noting that the economic toll has been severe, with Lebanon's economy contracting by 38 percent between 2019 and 2024.
The report suggests that comprehensive recovery anchored in structural reforms could reverse the decline, projecting economic growth of 8.2 percent in 2026 and 7.1 percent in 2027. However, even with such reforms, the country's GDP would remain 8.4 percent below its 2017 peak of USD 51.2 billion.
The report recommends prioritising key sectors with high potential to stimulate growth, particularly agriculture, construction, tourism, and industry.
Source: Times of Oman
