NNA - The World Bank on Friday estimated Lebanon’s recovery and reconstruction costs at $11 billion following the war between Israel and Hezbollah, which ended with a ceasefire last November.

“Reconstruction and recovery needs following the conflict that affected Lebanon are estimated at US$11 billion,” the World Bank said in a report assessing damage and losses from October 8 to December 20, 2024.

The report put the war’s total economic cost at $14 billion, including $6.8 billion in damage to physical structures and $7.2 billion in economic losses from reduced productivity, forgone revenues and operating costs.

The Lebanese housing sector was the hardest hit, with losses estimated at $4.6 billion, while the tourism sector lost $3.6 billion.

“The impacts of the conflict have resulted in Lebanon’s real GDP contracting by 7.1 percent in 2024, a significant setback compared to a no-conflict growth estimated at 0.9 percent,” the World Bank said.

“By the end of 2024, Lebanon’s cumulative GDP decline since 2019 approached 40 percent, compounding the effects of the multi-pronged economic downturn and impacting Lebanon’s prospects for economic growth.” -- AFP

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