Beirut, Lebanon - Recent

The United Nations said on Wednesday that if the Hezbollah-Israel conflict continues to escalate, Lebanon's economy will be further damaged, with its gross domestic product (GDP) projected to fall by 9.2 percent by the end of this year.

A report released by the United Nations Development Program (UNDP) said that Lebanon has been struggling to cope with its domestic economic and financial crisis in the past few years. The sudden escalation of the Hezbollah-Israel conflict in September has brought more difficulties to its economic development prospects.

The medium-term negative economic outlook is attributed to an expected sharp slowdown in economic activity, the anticipated slow pick-up of recovery and reconstruction efforts due to institutional weakness, in addition to significant losses in capital across all sectors, including infrastructure, buildings, factories, equipment, and utilities, the report said.

The conflict presents profound short-term economic implications, including significant contraction in key sectors, such as tourism, agriculture, manufacturing, and trade. The disruption of trade routes and supply chains, direct shelling, and reduced consumer demand has forced a significant mass of business activities to close or suspend operations, the report said.

The UNDP predicts that if the conflict continues until the end of this year, Lebanon's economy will shrink by 9.2 percent. Even if the fighting were to cease by the end of 2024, Lebanon's economy is projected to decline by 2.3 percent in 2025 and 2.4 percent in 2026.

Achim Steiner, administrator of the UNDP, said that not only are the lives of the Lebanese people under direct threat, but they are also facing increasingly severe poverty and social unrest. Stressing that what Lebanon needs most now is a ceasefire, he called on the international community for support and assistance.

Shotlist:
Beirut, Lebanon - Recent:
FILE: UN Headquarters, New York City - Date Unknown
1. UN headquarters;
2. Various of UN flag;
3. Various of UN emblem;
Beirut, Lebanon - Recent
4. Traffic;
5. National flag of Lebanon;
6. Various of warehouse, staff members;
Lebanon - Recent
7. Various of displaced residents;
Beirut, Lebanon - Recent
8. Buildings, wreckage along streets seen from moving vehicle;
Beirut, Lebanon - Oct 11, 2024
9. Traffic on road around destroyed building;
10. Various of ruins of buildings, cars damaged in airstrikes, rubble;
Beirut, Lebanon - Recent
11. City view;
Beirut, Lebanon - Oct 2, 2024
12. Various of smoke rising over city.

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