Lebanon’s economy comprises 90% Micro Small and Medium Enterprises (MSMEs) (Central Bank, 2023). The escalation of hostilities impacted MSMEs in loss of assets, disruption of markets and supply chains, although in “displacement destination areas” businesses, especially consumption related, were thriving. The conflict has caused significant economic damage, estimated at USD 5.1 billion over a year, mostly impacting the sectors of commerce (for the closure of the Lebanese Syrian
border), tourism, hospitality, and agriculture. The damage estimated in 2024 on the basic sectors are the following: Tourism and Hospitality: USD 20M, Health: USD 75M, Agriculture: USD 125M, Commerce: USD 180M, Environment: USD 221M, and Housing: USD 2.8B. (LRP Update, December 2024). The conflict has severely disrupted economic activity, cutting projected GDP growth for 2024 by at least 6.6%. Real GDP is now expected to contract by 5.7% compared to an anticipated 0.9% growth without the conflict.
Algeria
Egypt
Israel
Jordan
Lebanon
Libya
Morocco
Palestine *
Syria *
Tunisia
