Israeli aggression caused $20 billion in losses: Lebanese economy minister

Israeli aggression caused estimated losses between $15 billion and $20 billion across key sectors in Lebanon, the Lebanese minister of economy and trade said on Friday.

In an interview with Anadolu following the cease-fire between Israel and Lebanon that took effect early Wednesday, Amin Salam highlighted the severe impact of the conflict, which displaced 1.4 million people and caused extensive destruction.

Under the terms of the cease-fire, Israel will withdraw its forces south of the Blue Line de facto border in a phased manner while the Lebanese army will deploy its forces in southern Lebanon within 60 days. Implementation of the agreement will be overseen by the US and France.

More than 3,960 people have been killed and more than 16,500 were injured in Israeli attacks in Lebanon since October last year, according to Lebanese health authorities.

Salam explained that prior to the escalation on Sept. 17, estimated losses were around $10 billion, mainly affecting tourism and agriculture. However, with intensified attacks, approximately 500,000 Lebanese lost their jobs due to mass displacement, infrastructure damage, and a complete halt in the tourism sector.

The minister noted that daily economic losses reached hundreds of millions of dollars during the peak of the conflict, which hindered the completion of damage assessments.

- Reconstruction challenges

On reconstruction, Salam emphasized the need for $15 to $20 billion to rebuild infrastructure and revive the economy.

“We will be focused mostly on working on the unification of all the Lebanese people … and if we reflect trust and transparency, all the countries, including the Arab countries, the US, Europe, Türkiye, all the friends and allies of Lebanon will be very ready, will be always available to support Lebanon,” added the minister.

Lebanon has been without a president since Michel Aoun's term ended in Oct. 2022. Political disagreements have stalled the election of a successor, complicating efforts to attract international support.

Salam also underlined the importance of supporting the Lebanese Army, stating that they should prioritize executing the UN Security Council Resolution 1701, which would require big funding for the Lebanese army.

- Immediate needs

The minister estimated that $3 to $5 billion would be required in the first phase of reconstruction, focusing on resettling displaced individuals, reviving economic activity, and addressing urgent needs.

Salam acknowledged that the current caretaker government, led by Prime Minister Najib Mikati, lacks the capacity to implement large-scale reconstruction plans.

He commended Mikati's efforts to secure international support but noted that Lebanon will have to “put a roadmap with the international community after we elect a president and have a government.”

- Ongoing Risks

While Salam expressed hope for stability under the cease-fire, he cautioned that the coming months are critical.

“We will have to be more wise, and more careful not to give any excuse for the Israeli side to break the cease-fire and bring the war back to the table. So the danger is there,” he said.

- Türkiye's role

Salam praised Ankara for its consistent support, noting: “With Türkiye, we have witnessed over the past three years unprecedented relationships as far as support.”

“I personally have experienced three wonderful years of contribution and assistance from the Turkish side with all my colleagues in the government of Türkiye for any request that Lebanon has really put, whether it's humanitarian, economic, or political aid, Türkiye has always been very close and very responsive to Lebanon,” added the minister.

Since 2019, Lebanon has been grappling with an economic and financial crisis described by the World Bank as one of the worst globally.

The situation has worsened with the recent Israeli aggression, exacerbating financial instability, energy shortages, and deteriorating living conditions.