Factbox: Lebanon’s Myriad Crises Would Worsen with War Against Israel

Lebanon’s Deepening Crisis: A Country on the Brink

Amidst escalating tensions between Hezbollah and Israel, Lebanon finds itself teetering on the edge of a full-blown crisis. The conflict, which has been simmering since the Gaza war in October, is unfolding against a backdrop of deep financial and political turmoil in the country.

Lebanon has been grappling with a catastrophic financial collapse since 2019, caused by years of profligate spending and corruption by the ruling elite. The meltdown has led to a sharp devaluation of the currency, widespread poverty, paralyzed banks, and a surge in emigration not seen since the civil war of 1975-1990.

The World Bank has described Lebanon’s economic collapse as one of the most severe in modern times, with the economy shrinking from $55 billion in 2018 to $31.7 billion in 2020. Despite the grim economic outlook, the government has failed to implement the necessary reforms for recovery.

The impact of the crisis has been devastating, with poverty levels tripling over the past decade, reaching 44% of the population. The situation is dire, with households cutting back on basic necessities like food, while the rich continue to enjoy lavish lifestyles.

Adding to Lebanon’s woes is the absence of a head of state or a fully empowered government since October 2022, leaving the country in a state of unprecedented political vacuum. The power struggle between rival factions, including Hezbollah and its opponents, has further complicated efforts to form a new government.

As Lebanon grapples with its internal challenges, the conflict with Israel threatens to push the country into further turmoil. With no end in sight to the political and economic crises, Lebanon remains on the brink, in desperate need of stability and leadership to navigate the stormy waters ahead.