The World Bank recently released its Interim Damage and Loss Assessment (DALA) report on Lebanon where it gauged the impact of the conflict that has been ravaging Lebanon. The World Bank assessed that the propagation of the conflict has slashed Lebanon’s GDP growth for 2024 by 6.6%, reducing projected growth for the year from a positive 0.9% to a negative 5.7%. In details, the World Bank estimated total damages at around $3.41 billion and economic losses at $5.06 billion, aggregating to a colossal total war impact $8.47 billion allocated over several sectors as highlighted below:

• Agriculture: $124 million in damages (3.6% of total) and $1.13 billion in losses (22.4% of total) stemming from the burning and abandonment of large swaths of agricultural land and livestock, particularly in the South and Bekaa regions, along with lost harvests due to the displacement of farmers from the South.

• Commerce: $178 million in damages (5.2% of total) and $1.67 billion in losses (33.1% in total, the most affected) as the displacement of employees and business owners from war-torn areas has caused a nearly complete cessation of business activity.

• Education: $215 million in losses (4.2% of total) due to the displacement of some 150,000 public school and 300,000 private school students for the 2024-2025 academic year.

• Environment: $221 million in damages (6.5% of total) and $214 million in losses (4.2% of total) with 13% of forests, 16% of grasslands and 17% of riverine ecosystems in assessed areas being affected so far.

• Health: $74 million in damages (2.2% of total) and $338 million in losses (6.7% of total) as 66% of hospitals and 36% of primary healthcare centers in affected areas have been impacted by the conflict

• Housing: $2.8 billion in damages (82% of total, the most affected) and $389 million in losses (7.7% of total), with some 99,209 housing units (more that 8% of housing stock in affected areas) being either completely (18%) or partially (82%) destroyed.

• Tourism and Hospitality: $18 million in damages (0.5% of total) and $1.1 billion in losses (21.7% of total), with airport arrivals dropping by 75% and hotel occupancy lingering below 10% during the summer of 2024.

This is further highlighted by the below table:

From a geographical perspective, the report pointed out that the Nabatiyeh area suffered the heaviest damages ($1.55 billion, 45% of total), followed by the South area ($1.29 billion, 38% of total), the Bekaa area ($415 million, 12% of total) with damages to other areas aggregating to $162 million (5% of total).