$8.5 billion in war
damages and losses

World Bank estimates that final tally will be much higher

The cost of physical damages and economic losses due to the conflict in Lebanon is estimated at $8.5 billion, according to a World Bank report that provides an initial assessment of the impact of the conflict on the economy and key sectors.

The Lebanon Interim Damage and Loss Assessment (DaLA) finds that damages to physical structures alone amount to $3.4 billion and that economic losses have reached $5.1 billion.

In terms of economic growth, the conflict is estimated to have cut Lebanon’s real GDP growth by at least 6.6 percent in 2024. This compounds five years of sustained sharp contraction of real GDP that has exceeded 34 percent.

The report also looks at the impact of the conflict on the population. There are over 875,000 internally displaced persons including women, children, the elderly, persons with disabilities, and refugees at highest risk.

An estimated 166,000 individuals have lost their jobs, corresponding to a loss in earnings of $168 million.

Housing has been the hardest hit sector, with almost 100,000 housing units partially or fully damaged, amounting to $3.2 billion in damages and losses. Damages and losses of the commerce sector are close to $2 billion. They are partly driven by the disruption of business activity and by the displacement of employees and business owners. The destruction of crops, livestock and the displacement of farmers have resulted in agricultural losses and damages of about $1.3 billion.

The assessment draws on remote data sources and analytics to assess physical damage and economic losses across seven key sectors. The damage assessment covers the six most conflict-affected governorates, while economic losses are assessed nationwide whenever data allows.

Data collection was finalized as of October 27 for four covered sectors (commerce, health, housing, tourism/hospitality) and as of September 27th for the other three (agriculture, education, environment).

The World Bank will publish a comprehensive Rapid Damage and Needs Assessment (RDNA) that assesses economic and social losses as well as financing needs for reconstruction and recovery. It will be completed when the situation allows.

The cost of damages, losses and needs estimated through a comprehensive RDNA is expected to be significantly higher than that of this interim assessment. To respond to the current crisis facing the country, the World Bank is activating emergency response plans to re-direct existing resources to support urgent needs.