The World Bank has expressed its readiness to assist Lebanon in rebuilding and recovering from the devastating consequences of the Hezbollah-Israeli conflict.
Jean-Christophe Carret, the World Bank’s country director for the Middle East Department, confirmed the bank’s willingness to collaborate with the Lebanese government to support reconstruction efforts once the conflict concludes.
During a meeting with Lebanese Parliament Speaker Nabih Berri, Carret discussed plans for reconstruction initiatives. These include debris removal, rebuilding infrastructure, and rehabilitating industrial and agricultural facilities to restore vital sectors of the economy.
Berri appreciated the World Bank’s commitment and emphasised the need for the proposed plan to prioritise land reclamation and loans for farmers, industrialists, and small business owners.
He stressed that these measures should enable affected individuals and businesses to recover within a timeframe not extending beyond the end of the year.
The World Bank has estimated the physical damages and economic losses from the conflict in Lebanon at a staggering $8.5 billion. The repercussions of the conflict have severely impacted the country’s economy, cutting its real GDP growth by 6.6 per cent in 2024.
According to the latest Lebanon Economic Monitor (LEM) report, this adds to a cumulative real GDP decline of more than 38 per cent since 2019, underscoring the ongoing economic crisis Lebanon faces.
The devastating effects of mass displacement, widespread destruction, and reduced private consumption have further deepened Lebanon’s economic contraction.
The conflict has not only inflicted immediate damages but has also exacerbated long-standing macroeconomic challenges. These challenges have left Lebanon’s economy vulnerable and underlined the urgent need for reforms and targeted investments in critical sectors to ensure a sustainable recovery.
Reconstruction efforts must focus on creating opportunities for those displaced by the conflict and restoring livelihoods in affected areas.
A targeted and inclusive approach will be essential for rebuilding infrastructure, reinvigorating industries, and supporting the agricultural sector, which has been heavily affected. Restoring these sectors will be crucial to stabilising Lebanon’s economy and ensuring a path forward for its citizens.
The World Bank’s involvement in Lebanon’s recovery underscores the importance of international support in addressing the country’s pressing challenges.
However, the success of these efforts will depend on the Lebanese government’s ability to implement effective reforms and allocate resources efficiently.
The reconstruction process offers an opportunity for Lebanon to rebuild on a stronger foundation, addressing underlying issues that have long hindered its progress.
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