12 Hrs
Source:
MTV Lebanon
Source: MTV Lebanon
12 HrsMTV Lebanon
Source: MTV Lebanon
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Economics professor Jassem Ajaka warns that a new war would immediately push Lebanon’s economy into contraction. Since the 2019 collapse, the country’s losses have already exceeded 40% of GDP, and a new conflict would hit tourism, trade, agriculture and infrastructure. Lebanon relies on imports for more than 80% of essential goods, while disruption to Beirut Port or Rafic Hariri International Airport could drive up inflation, transport costs and insurance premiums. The country has no real capacity to borrow externally. The emergency plan focuses on conserving liquidity and redirecting resources to priority needs. It would allocate part of Banque du Liban’s reserves—about $11.4 billion—to essential imports, regulate the circulation of the lira and make limited interventions in the foreign-exchange market. But Lebanon’s presence on the grey list could delay trade financing, aid and remittances from expatriates. Ajaka concludes that the country lacks an adequate economic safety net and sufficient preparedness to absorb the shock of another war.
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