Lebanon's $11 Billion Recovery: The Cost of Conflict

Lebanon's reconstruction and recovery following the Israel-Hezbollah war is estimated at $11 billion by the World Bank. The conflict resulted in over 4,000 deaths and substantial damage, affecting ten sectors, with the economic cost totaling $14 billion. Housing was the most devastated sector.

A World Bank report has placed the cost of Lebanon's reconstruction and recovery after the 14-month Israel-Hezbollah war at an estimated $11 billion. The conflict, which claimed over 4,000 lives and displaced many, wrought widespread destruction across the nation.

The comprehensive report assessed damage and losses in ten sectors, covering the period from October 8, 2023, to December 20, 2024. Hezbollah's rocket attacks and Israel's retaliatory shelling turned into a relentless war, which a US-brokered ceasefire finally halted.

To fund the recovery, $3 to $5 billion will need public financing, especially for infrastructure. Private investors are anticipated to cover $6 to $8 billion for sectors like housing, commerce, and tourism. Housing sustained damages totaling $4.6 billion, highlighting its critical role in the economic fallout, which slashed Lebanon's GDP by 7.1% in 2024.

(With inputs from agencies.)