United Nations, Oct 24 (IANS) The United Nations Development Programme (UNDP) has estimated that Lebanon’s economy could shrink as much as 9.2 per cent in 2024 if the escalating hostilities continue through the end of the year.
The scale of the military engagement, the geopolitical context, the humanitarian impact, and the economic fallout in 2024 are expected to be much greater than in 2006, the report said in a rapid appraisal published on Wednesday.
The escalation of hostilities in September added another layer of complexity to the already profound economic and financial crisis that Lebanon has been struggling with for the past five years. As a result, the economy is expected to contract by 9.2 per cent, if the hostilities persist until the end of 2024, the report said as reported by Xinhua news agency.
UNDP said that even if the fightings were to cease by the end of 2024, the economy is projected to decline by 2.3 per cent in 2025, and 2.4 per cent in 2026. Without substantial international support, Lebanon’s economic outlook remains grim.
The medium-term negative economic outlook is attributed to an expected sharp slowdown in economic activity, the anticipated slow pick-up of recovery and reconstruction efforts due to institutional weakness, in addition to significant losses in capital across all sectors, including infrastructure, buildings, factories, equipment, and utilities, the report said.
The conflict presents profound short-term economic implications, including significant contraction in key sectors, such as tourism, agriculture, manufacturing, and trade.
The disruption of trade routes and supply chains, direct shelling, and reduced consumer demand have forced a significant mass of business activities to close or suspend operations.
UNDP expected that the unemployment rate may rise to a staggering 32.6 per cent by the end of the year, reflecting significant job losses and economic displacement in the country.
Since 2019, Lebanon’s economy has been severely impacted by a series of successive crises, resulting in a 28 per cent contraction in GDP between 2018 and 2021, according to the agency.
The recent developments, along with the structural challenges facing Lebanon, will increase poverty and vulnerability rates, the report warned, calling for the international community to mobilise immediate humanitarian relief and development assistance to support the country’s economic, social, and institutional stability.
–IANS
int/khz
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by BhaskarLive.in and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of BhaskarLive.in We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, BhaskarLive.in takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
