World Bank estimates Lebanon's reconstruction needs at US$11 Billion

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Ajay Banga 14th President of the World Bank Group | Official Website

Reconstruction and recovery needs in Lebanon following recent conflicts are estimated at $11 billion, according to a report by the World Bank. The Lebanon Rapid Damage and Needs Assessment (RDNA) 2025 evaluates damage, losses, and needs across ten sectors nationwide from October 8, 2023, to December 20, 2024.

The report outlines that $3 to $5 billion of the total will require public financing. This includes $1 billion for infrastructure sectors such as energy, municipal services, transport, and water management. Meanwhile, private financing is expected to cover $6 to $8 billion needed primarily in housing, commerce, industry, and tourism.

The economic cost of the conflict on Lebanon is assessed at $14 billion. Damage to physical structures amounts to $6.8 billion while economic losses from reduced productivity and foregone revenues reach $7.2 billion. Housing has been particularly affected with damages estimated at $4.6 billion. The commerce, industry, and tourism sector also faced significant impacts with losses totaling $3.4 billion countrywide. Nabatiyeh and South governorates were most affected geographically followed by Mount Lebanon.

From a macroeconomic standpoint, the conflict resulted in a contraction of Lebanon’s real GDP by 7.1% in 2024 compared to an anticipated growth of 0.9% without conflict. By the end of 2024, Lebanon's cumulative GDP decline since 2019 neared 40%, exacerbating existing economic challenges.

The RDNA was conducted upon request from the Government of Lebanon covering ten key sectors: Agriculture and Food Security; Commerce; Industry; Tourism; Education; Environment; Energy; Health; Housing; Municipal Services; Transport; Water Management. It was carried out with technical collaboration from the National Council for Scientific Research – Lebanon alongside UN agencies and development partners using globally recognized Post-Disaster Needs Assessment methodology developed by the European Union, World Bank, and United Nations.

This methodology employs a hybrid approach utilizing ground surveys combined with remote data including satellite imagery and social media analytics.