War impact on Lebanons economy: 10 economic reasons why Lebanon cannot afford the consequences of a new war

War impact on Lebanons economy: 10 economic reasons why Lebanon cannot afford the consequences of a new war

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2023-10-09 | 23:32

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War impact on Lebanon's economy: 10 economic reasons why Lebanon cannot afford the consequences of a new war

These sources have presented several critical points:

1-    The fragile financial stability will be disrupted, and the value of the Lebanese lira will once again face depreciation. The cost of war is exorbitant and requires currently unavailable resources, potentially forcing the state to tap into what remains of the deposits at the Central Bank of Lebanon (approximately $7 billion). These are meager funds left for depositors, making it paltry restitution before others.

2-    Lebanon is already struggling with a shortage of financing. It will suffer even more if it engages in a war against Israel and faces Western sanctions. This could impact remittances from expatriates, which currently serve as a lifeline for hundreds of thousands of families.

3-    Israel would target Lebanon's infrastructure, as it did in the 2006 war, possibly with even greater severity this time. Lebanon's infrastructure is already dilapidated and vulnerable due to the crisis and the lack of funding for maintenance. Due to geopolitical punitive measures, Lebanon may not have the financial support needed for reconstruction.

4-    The potential for additional monetary collapse could lead to