Israel’s attacks on Lebanon have caused significant damage to key sectors of the economy [Getty]
Destruction to Lebanon’s economy and buildings as a result of intense Israeli bombardment could be far greater than what is being reported, observers told The New Arab’s sister site Al-Araby Al-Jadeed on Monday.
The World Bank previously said that the extent of damage and losses to the Lebanese economy and key sectors amount to around $8.5 billion so far.
In figures published on 14 November, the World Bank said there are around 99,000 housing units which have been partially or fully destroyed in Lebanon, with damage to the housing sector amounting to around $2.8 billion.
The World Bank’s Damage and Loss Assessment teams found that direct physical damage in the country will come to at least $3.4 billion.
Lebanon’s economic losses so far come to an estimated $5.1 billion, the report added, with agriculture and commerce heavily affected.
However, Lebanon’s minister of economy, Amin Salam, said that he estimates that actual losses to Lebanon’s economy are over $20 billion, and that reconstruction may require between $20-30 billion.
Figures disputed
Maroun Khawli, the president of the General Federation of Lebanese Trade Unions told Al-Araby Al-Jadeed that the damage Israel has inflicted on the country is far greater than what figures suggest.
“It is illogical to compare Israel’s military capabilities and Lebanon’s losses. For example, an Israeli missile that costs $500,000 can destroy an entire building worth $2 million. These comparisons alone suggest the figures announced on Lebanon’s losses are inaccurate”.
He added that unrealistic figures can be damaging when it comes to the reconstruction period, as it could mean less international support in the future.
“The underestimation of the extent of losses sends the wrong message to the international community and encourages Israel to continue its fierce war…it also affects the chances of Lebanon obtaining necessary support for reconstruction and economic recovery,” he stressed.
He highlighted that there are many “indirect losses” which have not been factored into the World Bank’s report. This includes things such as losses to the tourism sector and disruption to key industries, transport, culture, and water supply.
Education and healthcare have also been severely impacted since the war started, something he said has not been properly considered.
Meanwhile, Lebanon’s minister of energy estimates that damages to the energy sector are around $450 million.
Khawli called on Lebanon’s government to issue accurate figures, noting that there are around 450,000 workers who are in need of financial compensation or for an unemployment fund to be established, where people will receive minimum wage during the war.
“Although it is difficult to accurately determine the full extent of damage amid ongoing aggression, it can be estimated through municipalities, who can count the number of destroyed buildings and ascertain damage to infrastructure. Emergency committees can also have a team assessing the needs for reconstruction” he said.
He also asked for Lebanon’s government to ask the International Monetary Fund (IMF) to re-evaluate the figures issued and urged for a joint committee between the IMF and government to be formed, allowing for the exchange of information and figures.
Israel’s attacks on Lebanon came amid an already worsening economic crisis which saw the currency lose much of its value. The attacks have killed at least 3,754 people and wounded over 15,626 others since 7 October 2023.
