BEIRUT: The impacts of the Israel-Hamas war are set to push crisis-hit Lebanon’s economy back into recession, the World Bank said Thursday, blaming mainly a “shock to tourism spending.”
Lebanon’s southern border has seen regular exchanges of fire, mainly between the Israeli army and Hamas ally Hezbollah, since the Gaza conflict erupted on October 7.
The impact of the conflict had reversed a slight recovery for Lebanon, which has battled a deep economic crisis for years, the Washington-based bank said in a report.
“Prior to October 2023, economic growth was projected — for the first time since 2018 — to slightly expand in 2023,” by 0.2 percent, the World Bank said.
It attributed the positive pre-war expectations mainly to summer tourism and remittances from the large Lebanese diaspora.
But, it added, “the current conflict and its spillovers into Lebanon are expected to quickly reverse the tepid growth projected for 2023, as the economy returns to a recession.”
The economy will contract “primarily due to the shock to tourism spending,” the report said.
More than half of travel reservations to Lebanon have been canceled for winter holidays, the World Bank said, warning that “tourism cannot, on its own, serve as the basis for an economic recovery.”
Real gross domestic product is expected to decline “to between minus 0.6 percent to minus 0.9 percent depending on the extent of the tourism shock,” it added.
Lebanon’s economy collapsed in late 2019, plunging most of the population into poverty, according to the United Nations.
Bickering politicians, widely accused of corruption, have been unable to agree on measures to save the economy, or even on selecting a new head of state.
Lebanon has been governed by a caretaker government with limited powers and without a president for more than a year as lawmakers have repeatedly failed to elect a new leader.
Gaza war to throw Lebanon back into recession: World Bank
https://arab.news/bwfwd
Gaza war to throw Lebanon back into recession: World Bank
- Lebanon’s southern border has seen regular exchanges of fire, mainly between the Israeli army and Hamas ally Hezbollah
- The impact of the conflict had reversed a slight recovery for Lebanon
Palestinian health ministry says 4 killed in Israeli West Bank strike
RAMALLAH: The Palestinian health ministry said Thursday that an Israeli air strike on a car killed four Palestinians and wounded three near the occupied West Bank city of Tulkarem.
The ministry announced that the Palestinians were killed “as a result of the (Israeli) bombing of a vehicle in Tulkarem camp,” which the Israeli army did not immediately confirm to AFP.
Turkiye, Iran leaders at Muslim summit in Cairo
- Relations between Egypt and Iran have been strained for decades, but diplomatic contacts have intensified since Cairo became a mediator in the war in Gaza
CAIRO: The leaders of Turkiye and Iran were in Egypt on Thursday for a summit of eight Muslim-majority countries, meeting for the first time since the ouster of Syria’s president Bashar Assad.
Turkiye historically backed the opposition to Assad, while Iran supported his rule.
The gathering of the D-8 Organization for Economic Cooperation, also known as the Developing-8, was being held against a backdrop of regional turmoil including the conflict in Gaza, a fragile ceasefire in Lebanon and unrest in Syria.
In a speech to the summit, Turkiye’s Recep Tayyip Erdogan called for unity and reconciliation in Syria, urging “the restoration of Syria’s territorial integrity and unity.”
He also voiced hope for “the establishment of a Syria free of terrorism,” where “all religious sects and ethnic groups live side by side in peace.”
Iranian President Masoud Pezeshkian urged action to address the crises in Gaza, Lebanon and Syria, saying that it is a “religious, legal and human duty to prevent further harm” to those suffering in these conflict zones.
Pezeshkian, who arrived in Cairo on Wednesday, is the first Iranian president to visit Egypt since Mahmoud Ahmadinejad, who visited in 2013.
Relations between Egypt and Iran have been strained for decades, but diplomatic contacts have intensified since Cairo became a mediator in the war in Gaza.
Foreign Minister Abbas Aragchi visited Egypt in October, while his Egyptian counterpart Badr Abdelatty traveled to Tehran in July to attend Pezeshkian’s inauguration.
Ahead of the summit, the Iranian top diplomat said he hoped it would “send a strong message to the world that the Israeli aggressions and violations in Gaza, Lebanon and Syria” would end “immediately.”
Erdogan was in Egypt earlier this year, and discussed with President Abdel Fattah El-Sisi economic cooperation as well as regional conflicts.
Established in 1997, the D-8 aims to foster cooperation among member states, spanning regions from Southeast Asia to Africa.
The organization includes Egypt, Turkiye, Iran, Nigeria, Pakistan, Bangladesh, Indonesia and Malaysia as member states.
Iraq begins repatriating Syrian soldiers amid border security assurances
DUBAI: Iraq has begun the process of returning Syrian soldiers to their home country, according to state media reports on Wednesday.
Lt. Gen. Qais Al-Muhammadawi, deputy commander of joint operations, emphasized the robust security measures in place along Iraq’s borders with Syria.
“Our borders are fortified and completely secure,” he said, declaring that no unauthorized crossings would be permitted.
Muhammadawi said that all border crossings with Syria are under tight control, stating: “We will not allow a terrorist to enter our territory.”
Turkiye won’t halt Syria military activity until Kurd fighters ‘disarm’
ISTANBUL: Turkiye will push ahead with its military preparations until Kurdish fighters “disarm,” a defense ministry source said Thursday as the nation faces an ongoing threat along its border with northern Syria.
“Until the PKK/YPG terrorist organization disarms and its foreign fighters leave Syria, our preparations and measures will continue within the scope of the fight against terrorism,” the source said.
Hamas says Israeli strikes in Yemen ‘dangerous development’
GAZA: Palestinian militant group Hamas said Thursday that Israel’s strikes in Yemen after the Houthi rebels fired a missile at the country were a “dangerous development.”
“We regard this escalation as a dangerous development and an extension of the aggression against our Palestinian people, Syria and the Arab region,” Hamas said in a statement as Israel struck ports and energy infrastructure in Yemen after intercepting a missile attack by the Houthis.
