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[INTERNATIONAL] · Lebanon, Israel · 15 sources

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Lebanon faces economic contraction and intensified military strikes

The World Bank has projected that Lebanon's economy will contract by 6.4 percent in 2026, reversing previous growth trends. This downturn is attributed to the ongoing conflict with Israel, which has caused a collapse in tourism, weakened domestic consumption, disrupted supply chains, and led to prolonged population displacement. Inflation is also expected to rise to 17.5 percent due to supply disruptions and volatile fuel prices.

Simultaneously, military activity in southern Lebanon has intensified. Israeli forces have conducted widespread airstrikes, artillery shelling, and explosions across several districts, including Tyre, Bint Jbeil, Nabatieh, Marjayoun, and Hasbaya. Reports indicate that these operations target Hezbollah infrastructure, though they have caused significant damage to civilian areas. Lebanese authorities report that more than 4,300 people have been killed and over 12,000 injured since the escalation began in March, with displaced persons exceeding 1 million.

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Dahlia Khalifa · Hezbollah · Israel · Israel · Lebanon · Nabatieh · National News Agency · World Bank

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