Economy may shrink
by up to 25% with war

The National

The escalating conflict between Israel and Hezbollah could result in an economic contraction of 10 per cent to 25 per cent in Lebanon this year, as vital sectors from agriculture to tourism are destroyed and critical infrastructure damaged, economists say.

Lebanon, which is already ailing under the weight of several crises from years of political deadlock and nearly 12 months of Israel-Hezbollah fighting, could be saddled with a “significant” economic downturn in early 2025, Keren Uziyel, senior country analyst for Middle East and Africa at the Economist Intelligence Unit (EIU), told The National.

The EIU had predicted a seventh consecutive year of economic contraction in Lebanon in 2024, even before Israel's attacks on Monday that marked the deadliest bombardment of Lebanon since 2006. FULL STORY