World Bank projects that Israel-Hamas war could push Lebanon back into recession

By ABBY SEWELL
Associated Press

BEIRUT (AP) — The World Bank says the ripple effects of the war in Gaza are likely to knock Lebanon’s fragile economy back into recession. Lebanon had been making a tepid recovery after years of crisis. Before the outbreak of the ongoing Israel-Hamas war on Oct. 7, the World Bank projected that Lebanon’s economy would grow in 2023, for the first time since 2018. The uptick was driven largely by remittances sent from Lebanese working abroad and by tourism. Instead, with daily clashes between the Lebanese militant group Hezbollah and Israeli forces along the border, the World Bank projects that Lebanon’s 2023 GDP will shrink by at least -0.6%.