Damaged vehicles are seen following an Israeli airstrike that targeted an apartment in Choueifat, south of Beirut, Lebanon, on May 28. File Photo Wael Hamzeh/EPA
BEIRUT, Lebanon, June 16 (UPI) -- Lebanon's economy, shattered by the 2019 financial collapse, has suffered another major shock from the Israel-Hezbollah war, which has disrupted recent recovery efforts and hit the tourism sector -- the country's main revenue generator -- particularly hard.
The war, which began in October 2023 when Hezbollah opened a support front for Gaza, escalated as Israel intensified its attacks and the Iran-backed regime resumed fighting in solidarity with Iran last March after 15 months of inactivity. It further deepened Lebanon's economic crisis and left the country grappling with its repercussions.
Direct and indirect losses are initially estimated at $20-30 billion, reflecting extensive destruction and mass displacement caused by the conflict, along with severe disruptions to economic activity. Inflationary pressures have also intensified due to the closure of the Strait of Hormuz.
Nearly every sector of the economy has been affected.
