According to data from the World Bank and reports by Dagbladet, Lebanon’s economy has shrunk to under half of its pre-2019 baseline of about sixty billion dollars, fueled by cascading crises including soaring inflation, infrastructure failures, and ongoing military conflicts. With food prices surging by 70 percent between 2023 and 2026, ordinary citizens face severe economic distress, forcing widespread reliance on foreign remittances and emergency humanitarian aid.
The Human Toll of Economic Collapse in Beirut
In the Hamra district of central Beirut, 71-year-old Siham Mourkos sits in a darkened living room, unable to afford basic groceries or necessary medications for her diabetes. According to Dagbladet, Mourkos worked for years in a position at the Ministry of Health, yet her state pension no longer covers basic rent. “I was in a very good position in the health department where I worked for many years. Still, I barely receive a pension. What have we done to deserve this?” Mourkos told Dagbladet.
Mourkos is far from alone. According to local reporting, virtually all Lebanese citizens are experiencing severe financial strain as debt mounts monthly. Inflation peaked at over 268 percent in 2023, according to Lebanese Economy Minister Amer Bisat, and while inflation has since moderated to roughly 15 percent, the purchasing power of ordinary families remains devastated.
Macroeconomic Pressures and Government Crisis Management
According to Lebanese Economy Minister Amer Bisat, the state’s primary function has shifted primarily to crisis management. Bisat noted that the 2024 conflict alone caused an estimated eleven billion dollars in infrastructure damage, leaving one in four Lebanese citizens displaced among a population of six million. Furthermore, World Bank analyses project that the economy will shrink further.
According to Nasser Yassin, a former Lebanese minister and current director of the Arab Center for Research and Policy Studies in Beirut, the country’s middle class has effectively vanished. “The majority of Lebanese have become poor. There is no middle class left. Many would not survive without the transfers from relatives abroad,” Yassin stated to Dagbladet. Families rely heavily on an estimated $6 billion sent annually by expatriates.
Infrastructure Decimation and Humanitarian Aid Shortfalls
According to United Nations coordinator Imran Riza, the displacement crisis involves over 1.2 million people fleeing their homes. While over 800,000 Lebanese have now returned to or toward their home areas, many find their properties destroyed or located in zones under Israeli control. Riza stated that the UN has received only half of the financial resources required to meet basic needs such as water, electricity, and healthcare.
Education has also suffered immensely. According to Yassin, over 100 schools have been bombed, and many others serve as shelters for the displaced. This leaves half a million children without regular schooling, with active students attending classes only two days a week due to double-shift requirements.
Did you know? According to the World Bank, Lebanon’s economy will shrink further, reducing a nation into widespread dependency on foreign remittances.
Frequently Asked Questions
What caused the current economic crisis in Lebanon?
According to economic officials and analysts, the crisis stems from political corruption, political paralysis, and extensive infrastructure damage from military conflicts.
How much has inflation dropped in Lebanon?
According to Lebanese Economy Minister Amer Bisat, inflation peaked at over 268 percent in 2023 and has since declined to roughly 15 percent.
How do ordinary Lebanese families survive without adequate salaries?
According to analysts like Nasser Yassin, a significant portion of the population relies on the $6 billion transferred annually by family members working abroad, alongside assistance from international donors.
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