War worsens Lebanon's economic crisis with job losses, slow business, soaring prices

Lead

Beirut, Lebanon – In the Furn el-Shebbak neighborhood, Mario Habib's barber shop, a fixture since 2006, has seen fewer clients as the war between Israel and Hezbollah, now intertwined with the US-Israeli conflict with Iran, takes a severe toll on Lebanon's economy. Prices are rising, jobs are disappearing, and businesses are struggling to survive. The war, which has compounded years of financial turmoil, has pushed the country to the brink.

Coverage Comparison

Reporting from Al Jazeera and The Hindu presents a consistent picture of economic devastation, though with slightly different emphases. Al Jazeera focuses on the daily struggles of small business owners like Habib, highlighting rising costs and reduced income. The Hindu, based on AP reporting, centers on Ayman al-Zain's destroyed sports clothing store in Beirut's southern suburbs, symbolizing the destruction and the daunting task of rebuilding. Both outlets attribute the crisis to the US-Israeli war with Iran and the closure of the Strait of Hormuz, which has disrupted oil supplies and driven up prices.

Key Claims

• The Lebanese pound has lost over 90% of its value against the US dollar, according to multiple reports.
• Around 1.2 million Lebanese have been displaced due to the war, as reported by multiple sources.
• Lebanon faces an economic loss of approximately 7% of its GDP due to the war, a claim carried by The Hindu and not independently verified by other outlets in the provided material.
• The World Bank estimated reconstruction and recovery costs from the conflict at about $11 billion, as reported by multiple sources.
• Remittances to Lebanon are expected to drop significantly due to the war, according to projections from financial analysts.

Perspectives

The human cost is evident in the stories of individuals. Habib, a barber, refuses to raise prices despite soaring costs, prioritizing his clients' comfort. Al-Zain, a shop owner, faces the impossible choice of rebuilding amid uncertainty and inflation. Experts point to a deepening economic shock with existential implications. Economy Minister Amer Bisat described the situation as "a major economic shock, one of honestly an existential nature," according to The Hindu. The World Bank's figures on financial sector losses and reconstruction needs underscore the scale of the challenge.

The war has also exposed Lebanon's vulnerabilities, including unregulated markets susceptible to price gouging and a state electricity company that provides only a few hours of power daily. While some growth was recorded in 2025, the current conflict has eroded those gains, with projections of zero GDP growth in 2026 if the war persists, as reported by Al Jazeera.

As the conflict continues, the outlook for Lebanon remains grim. The combination of physical destruction, economic instability, and widespread displacement threatens to unravel the social fabric, with no clear end in sight.