🔶 World Bank: Lebanon’s economic improvement was wiped out by the 2026 war

In its recent report titled “The economy trapped in conflict,” the World Bank estimates that Lebanon’s gross national product increased by 4.2% in 2025; a figure considered the strongest economic growth in Lebanon since the country’s financial crisis began in 2019.

The economic improvement in 2025 was mainly due to increased consumption by the private sector, investment, tourism, and also improved short-term economic indicators. However, this trend was sharply halted in March 2026 and after Hezbollah’s decision to resume hostilities. These fighting operations caused further damage to housing and infrastructure, forced people from their homes, disrupted supply chains, and dealt a severe blow to tourism and domestic demand.

According to United Nations figures, about 360,000 people remain displaced, at least 22,000 of whom live in collective shelters. Also, more than 700,000 people continue to be affected by damage to water infrastructure in parts of southern Lebanon. The UN had announced that, at the height of the fighting, 1.2 million people had been displaced within Lebanon.