World Bank Estimates Lebanon's Post-War Reconstruction Costs at ₹90,000 Crore
New Delhi (The Uttam Hindu): Lebanon faces an estimated $11 billion in reconstruction and recovery costs following the 14-month war with Israel and Hezbollah, according to a report released by the World Bank on Friday. The report, part of the Lebanon Rapid Damage and Needs Assessment, covers damage and losses across 10 sectors in the country between October 8, 2023, and December 20, 2024.
The report highlights that between $3 billion to $5 billion will require public financing, particularly for infrastructure sectors, while the remaining $6 billion to $8 billion will need to be privately financed, primarily for housing, commerce, industry, and tourism sectors.
The conflict began on October 8, 2023, when Hezbollah launched rocket fire across the border, a day after a Hamas-led incursion into southern Israel sparked the war in Gaza. Israel responded with airstrikes and shelling in Lebanon, escalating into a full-scale war by late September. A ceasefire brokered by the United States came into effect in late November.
In a related incident, the Lebanese army reported on Friday that Israeli military forces escorted Israeli civilians into Lebanese territory near the village of Houla, violating the ceasefire agreement. Lebanese leaders have condemned the continued Israeli military presence in Lebanon's border areas as a violation of the ceasefire terms, marking it as an occupation.
The World Bank’s report further reveals that the total economic cost of the conflict for Lebanon is $14 billion. Of this, $6.8 billion has been attributed to damage to physical infrastructure, while $7.2 billion represents economic losses from decreased productivity and revenues. The housing sector has borne the brunt of the damage, with losses estimated at $4.6 billion.
The report also notes a sharp decline in Lebanon’s GDP, which contracted by 7.1% in 2024, compared to an anticipated 0.9% growth. Lebanon’s GDP has now shrunk by nearly 40% since 2019, marking a severe economic setback.
The war also led to the deaths of over 4,000 people and displaced hundreds of thousands, causing widespread destruction across the country. In the latest developments, Lebanon's National News Agency reported a large-scale Israeli airstrike on southern Lebanon targeting sites believed to be controlled by Hezbollah. Israel’s military confirmed the strikes, saying they targeted weapons and rocket launchers associated with Hezbollah.
As the country begins its recovery efforts, the need for international support and cooperation remains critical to addressing the significant challenges ahead.
