What is the cost of reconstruction of Lebanon after the war?

The World Bank said in a new report yesterday that the cost of reconstruction and recovery in Lebanon after the conflict between Israel and Hezbollah, which spanned 14 months, is estimated at 11 billion dollars.

The war resulted in the killing of more than four thousand people, the wounding of thousands in Lebanon, the displacement of hundreds of thousands, and widespread destruction in the country.

The report, named after the “evaluation of damage and rapid needs in Lebanon” covered the destruction and losses in dozens of sectors across the country from October 8, 2023 to December 20, 2024.

The World Bank report estimated that out of $ 11 billion in reconstruction and recovery needs, a general financing of 3 to 5 billion dollars will be needed.

This includes the infrastructure sectors. He added that there is a need for a special financing of about 6 to 8 billion dollars of cost, most of which are in the housing, trade, industry and tourism sectors.

The report said that the economic cost of the conflict on Lebanon has a total of 14 billion dollars, while damage to the physical structures of up to 6.8 billion dollars, economic losses of decline in productivity, loss of revenues, and operational costs amounting to 7.2 billion dollars.

The housing sector was the most affected, as it was estimated at $ 4.6 billion.

The report found that the conflict resulted in a real shrinkage in the gross domestic product in Lebanon by 7.1% in 2024, which is an enormous setback compared to an expected growth of 0.9% if the war does not occur.

By the end of 2024, the decrease in GPA in Lebanon has approached a decrease in Lebanon since 2019 from 40%.