World Bank Projects 6.4 Percent Contraction for Lebanon Due to War

The World Bank released a report projecting that Lebanon's economy will contract by 6.4 percent in 2026 due to the ongoing Israel-Hezbollah conflict. The report cites the collapse of tourism, disrupted supply chains, and mass displacement as primary drivers of the economic decline. The conflict, which escalated significantly in March 2026, has resulted in over 4,300 cumulative deaths and derailed Lebanon's fragile post-2019 financial recovery efforts, leading to heightened regional instability.

Date: August 22, 2026

Location: Beirut Governorate, Lebanon

Conflict: Israel-Hezbollah Conflict

Category: other

Severity: MEDIUM

Source: Sudan Independent

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