World Bank Estimates Lebanon Requires $11 Billion for Economic Recovery After Conflict

TDT | Manama
Email : editor@newsofbahrain.com

Lebanon will need approximately $11 billion to recover economically and rebuild following its recent conflict with Israel, according to a report issued on Friday by the Lebanon Rapid Damage and Needs Assessment (RDNA) 2025.

The report outlines that public funding will be required for $3 billion to $5 billion of the total recovery costs, including $1 billion dedicated to the repair and improvement of critical infrastructure sectors such as electricity, transportation, municipal services, and water management.

Private sector investments are expected to cover an additional $6 billion to $8 billion, primarily for rebuilding housing, businesses, manufacturing, and the tourism industry.

The World Bank’s assessment also estimates the total economic toll of the conflict at $14 billion, which includes $6.8 billion in direct physical damage and $7.2 billion in economic losses resulting from reduced productivity, lost revenue, and operational disruptions.

"Housing has suffered the most significant damage, with an estimated $4.6 billion in losses," the report stated, also noting that the commercial, industrial, and tourism sectors collectively endured $3.4 billion in damages across the country.

Lebanon's GDP was severely impacted, experiencing a 7.1% decline in 2024, a sharp reversal from the modest 0.9% growth recorded before the conflict.

"The cumulative decline in Lebanon’s GDP since 2019 has approached 40%, compounding the effects of a broad economic downturn and further hindering the country's growth prospects," the report highlighted.

Following months of cross-border fighting between Israel and Hezbollah, which escalated into full-scale conflict in September, a fragile ceasefire has held since November 27. However, Lebanese authorities have recorded nearly 1,100 ceasefire violations by Israel, resulting in at least 84 deaths and over 280 injuries.