The World Bank released on May 23, 2024 a report titled “Lebanon Poverty and Equity Assessment 2024” report in which it evaluates the current state of poverty and inequality in Lebanon. The report only covers five governorates (Akkar, Beirut, Bekaa, Mount Lebanon and North Lebanon) noting that the data corresponding to other governorates (Baalbek El-Hermel, El-Nabatieh, and South Lebanon) is absent, thereby limiting the empirical poverty assessment of the entire country. In details, the report revealed that monetary poverty in Lebanon rose from 12% in 2012 to 44% in 2022, with one in every three individuals (33%) becoming poor in 2022, compared to 11% a decade earlier. The report noted that overall prices have increased by 15 times over the past decade as a result of the devaluation of the Lebanese Pound since the 2019 crisis, thereby eroding the purchasing power of individuals with Lira-based incomes. The report stated that poverty is unevenly distributed across Lebanon, with poverty rates varying from 2% in Beirut to 62% in Akkar. In addition, the report noted that North Lebanon and Akkar (which encompasses large shares of workers in agriculture) saw larger increases in their poverty rates compared to 2012.

The report also stated that Lebanese households are suffering from a sizeable loss in their purchasing power since the beginning of the financial and economic crisis in 2019. According to the World Bank, and as a result of the massive rise in food prices, food insecurity has increased dramatically, forcing households to change their food diets by shifting towards cheaper food. More specifically, the report revealed that poor households were twice more likely than non-poor families to reduce their meal portions and decrease the number of meals consumed, noting that adults in poor households are four times more likely to limit their food intake to feed their children.

The report mentioned that amid the crisis, Lebanon is rapidly shifting towards a cash-based economy which presents risks for future economic growth, noting however that given the present circumstances, the cash economy is shielding individuals who are partially and/or fully paid in foreign currency. As per the World Bank, the top 20% of Lebanese households received over 50% of their total income in dollars, effectively protecting them from currency-driven inflation. On the other end of the spectrum, the bottom 20% of households only obtained 6% of their total income in dollars, placing them at the mercy of high inflation. Accordingly, households were compelled to resort to a variety of coping strategies to attain an acceptable standard of living namely draining their personal savings, asking for help from several sources, borrowing, and reducing their expenditures (especially on food). In figures, circa 87% of households surveyed in the 2022-2023 period stated that they relied on savings to finance their living expenses, 58% asked relatives and friends for assistance, 65% asked for help from non-government entities, 40% received formal loans or lines of credit and 68% approached informal sources. In addition, the report noted that 60% of households reduced their food spending, while over 50% decreased their spending on non-food items such as fuel and utilities. Furthermore, the report also stated that health expenditures were negatively affected in one third of families.

The World Bank commented that undertaking direly needed comprehensive macro-fiscal reforms are vital to stop the deterioration in living standards and conditions. Improving social safety nets, investing in human capital, improving formal job opportunities and providing cost-effective public transportation are all urgent interventions needed to aid in easing poverty, addressing the widening inequality, and further enhancing resiliency in the medium to long term.