--- title: "The Lebanese Economy Between Accumulating Crises and the Repercussions of Regional Wars | Ghazi Mahmoud" url: https://ghazimahmoud.com/en/articles/2026-04-22-0f3db7/ lang: en description: "Since the end of 2019, the Lebanese economy has been accumulating successive losses amid worsening structural imbalances and increasingly complex financial and economic crises, with no serious signs on the horizon of a sustainable solution." --- [All articles](https://ghazimahmoud.com/en/articles/) # The Lebanese Economy Between Accumulating Crises and the Repercussions of Regional Wars [Brig. Gen. (Ret.) Dr. Ghazi Mahmoud](https://ghazimahmoud.com/en/about/) 22 Apr 2026 · 4 min read [The Lebanese economy](https://ghazimahmoud.com/en/articles/leb/)[The world economy](https://ghazimahmoud.com/en/articles/world/) Since the end of 2019, the Lebanese economy has been accumulating successive losses amid worsening structural imbalances and increasingly complex financial and economic crises, with no serious signs on the horizon of a sustainable solution. In this fraught context, Lebanon and its economy today face a new crisis stemming from Israeli attacks in the context of the war in support of Iran, whose economic and humanitarian effects are likely to surpass all the crises the country has witnessed over the past years. The financial and economic crisis that erupted in 2020 led to the formation of a financial gap estimated at around US$80 billion, accompanied by the dissipation of the savings of the Lebanese in Lebanese banks, as well as a sharp collapse in the value of the national currency, followed by an erosion of purchasing power and rising rates of inflation, poverty and unemployment. The coronavirus pandemic also played its part in deepening the crisis of the national economy and its contraction at that time. Scarcely had the Lebanese economy caught its breath when the Beirut port explosion on August 4, 2020 deepened the severity of the collapse, resulting in material losses estimated at between US$10 billion and US$15 billion. Human losses reached more than 220 killed and more than 7,000 others injured, in addition to widespread destruction in the capital, Beirut, making it one of the largest non-nuclear explosions in history. With the war in support of Gaza, which broke out on October 8, 2023 and escalated in intensity in 2024, the economic collapse ongoing since 2019 worsened, causing losses estimated at between US$11 billion and US$14 billion, in addition to severe damage to the agricultural, industrial and commercial sectors, and leaving more than 4,040 killed and around 16,000 injured. The number of partially damaged housing units was also estimated at around 317,000, while the number of completely destroyed units reached around 51,000, distributed across Beirut's southern suburbs, the Bekaa Valley and the border villages. The recent Israeli aggression against Lebanon in the context of the war in support of Iran since early last March has inflicted additional economic losses on Lebanon, estimated by the Ministry of National Economy at between $60 million and $80 million daily, with the possibility of rising to more than $100 million should Israeli attacks resume. This aggression has resulted in widespread destruction and losses exceeding $10 billion, in addition to a high human cost, with the death toll reaching around 1,500 martyrs and more than 4,640 injured, according to official reports. The toll of this war and its economic cost are compounded by its coincidence with regional escalation, particularly the war on Iran and the resulting disruptions in the global economy. The disruption of navigation in the Strait of Hormuz has thrown global supply chains into disarray and driven up oil, shipping and insurance prices, which has been reflected directly in the prices of goods and services. These developments have also contributed to disrupting fertilizer supplies and raising their prices, as well as increasing the cost of air transport, casting a shadow over tourism activity globally. Amid these developments, the Lebanese economy faces compounded and complex domestic challenges, as it is directly affected by any external disruption, especially one that may affect the countries that attract Lebanese labour. With rising security risks in the Gulf states, any financial support from these countries to Lebanon becomes unlikely, and expatriate remittances are negatively affected, increasing pressures on both the national balance of payments and the national economy. Moreover, the phenomenon of imported inflation is worsening due to Lebanon's heavy reliance on abroad, as Lebanon imports oil and its derivatives, which account for around 25% of total imports, and relies on imports to secure around 85% of consumer goods. This makes any rise in global prices a direct cause of higher domestic prices, leading to mounting inflationary pressures and exacerbating the erosion of citizens' purchasing power. The most prominent challenge facing the national economy remains the cost of successive Israeli attacks, particularly the attacks linked to the latest war, which come on top of the burdens of the war in support of Gaza and the crises that preceded it, amid Lebanon's inability to secure funding sources for reconstruction. Linking international aid to political and security conditions, particularly regarding Hezbollah's weapons, further complicates the picture and delays the recovery process. Ultimately, Israeli attacks have exhausted the Lebanese economy as a result of successive support wars, especially as it suffers from deep structural fragility that has rendered it unable to absorb repeated shocks, whether internal or external. As Lebanon is kept an arena for conflicts, amid ongoing regional tensions and the absence of a clear reform vision, Lebanon remains vulnerable to further economic and social decline, unless the state takes the initiative to adopt a comprehensive reform path backed by genuine political will and effective international support that puts an end to the course of ongoing collapse. Translated from Arabic with AI. [Read it in Arabic](https://ghazimahmoud.com/articles/2026-04-22-0f3db7/) ## Published in - [Anbaa Online](https://anbaaonline.com/news/324640) - [Channel 23](https://ch23.com/Article/356884/الاقتصاد-اللبناني-بين-تراكم-الازمات-وتداعيات-الحروب-الإقليمية) - [Al-Iktissad Wal-Aamal](https://www.iktissad.com/الاقتصاد-اللبناني-بين-تراكم-الأزمات-وتداعيات-الحروب-الإقليمية) - [MTV Lebanon](https://www.mtv.com.lb/news/1686706) - [OZ Arab Media](https://ozarab.media/الاقتصاد-اللبناني-بين-تراكم-الازمات-و/) - [Lebanon Files](https://www.lebanonfiles.com/2026/articles/باقلامهم/الاقتصاد-اللبناني-بين-تراكم-الازمات-و/) - [Al-Duha magazine](https://dhohamagazine.com/الاقتصاد-اللبناني-بين-تراكم-الأزمات-و/) - [Lebanese Army Magazine](https://www.lebarmy.gov.lb/ar/content/الاقتصاد-اللبناني-بين-تراكم-الأزمات-وتداعيات-الحروب-الإقليمية) ## More on the Lebanese economy [All articles on this subject](https://ghazimahmoud.com/en/articles/leb/) [15 Apr 2026 · From Economic Growth to Sustainable Development: A Comparative Study · Al-Duha magazine ](https://ghazimahmoud.com/en/articles/2026-04-15-067ab6/) [9 Apr 2026 · Energy Prices Worsen Living Standards in Lebanon · Channel 23, MTV Lebanon ](https://ghazimahmoud.com/en/articles/2026-04-09-2ccc3f/) [25 Mar 2026 · Lebanon in the Eye of the Storm... and the Repercussions Are Mounting · Channel 23, Al-Duha magazine ](https://ghazimahmoud.com/en/articles/2026-03-25-8ec91c/)