Three months after Israel-Hezbollah war ended in Lebanon, the World Bank has estimated $11 billion for the reconstruction and recovery of the middle-east country.
According to the financial organization, out of the $11 billion in reconstruction and recovery needs, $3 to $5 billion will need to be publicly financed, including for infrastructure sectors.
It added that private financing is required for about $6 to $8 billion of the costs, mostly in the housing, commerce, industry, and tourism sectors.
The report submitted by the World Bank’s Lebanon Rapid Damage and Needs Assessment, covered damage and losses in ten sectors across the country from Oct. 8, 2023 until Dec. 20, 2024.
In a statement released on Friday, it was stated that the economic cost of conflict on Lebanon totals $14 billion, with damage to physical structures amounting to $6.8 billion and economic losses from reduced productivity, foregone revenues, and operating costs reaching $7.2 billion.
Following a thorough analysis by the organization, the Israel-Hezbollah war resulted in Lebanon’s real gross domestic product contracting by 7.1% in 2024, a significant setback compared to a projected growth of 0.9 percent had the war not happened.
This estimation comes 14 months after Hezbollah fired rockets across the border on Oct. 8, 2023, following a deadly Hamas-led incursion into southern Israel.
Israel responded with shelling and airstrikes in Lebanon, and the two sides became locked in an escalating conflict that became a full-blown war in late September.
The war killed over 4,000 people in Lebanon, displaced hundreds of thousands and caused widespread destruction in the nation.
