Jaber warns of the repercussions of war: Lebanon’s economy threatened by sharp contraction and losses of billions of dollars

Lebanese Finance Minister Yassine Jaber warned on Thursday of the worsening economic repercussions of the ongoing war between Israel and Hezbollah, noting that Lebanon’s economy could contract by between 7 and 10 percent in 2026, with losses potentially reaching around $20 billion if the escalation continues and external support declines.

Jaber said, in remarks to Western media outlets, that the Lebanese government had been forced to allocate about $50 million to provide support for more than one million displaced people uprooted by the war. He pointed out that the local economy depends primarily on remittances from expatriates and tourism revenues, amid growing fears that both sectors will be affected by the current regional tensions.

The finance minister also indicated that the current volume of international aid remains far lower than what was provided during the 2024 war, stressing that Lebanon has become more reliant on loans rather than grants as economic and living pressures persist and the burden on citizens worsens.