The war has profoundly impacted Lebanon on multiple fronts, with agriculture being one of the hardest hit sectors. Lebanon’s economy, already fragile due to a prolonged financial crisis since 2019, has seen further deterioration. The GDP, which had already contracted by over 34% in recent years, is expected to shrink by an additional 9.2% in 2024 if the conflict continues, as estimated by the UNDP. Losses are extensive across various sectors, including housing, commerce, education, and health. According to the World Bank, the agriculture sector alone has incurred losses amounting to $1.3 billion, driven by widespread displacement, the destruction of crops, and severe damage to livestock and infrastructure.
The table below summarizes the economic impact across key sectors, compiled from reports by the World Bank, UNDP, and various other organizations:
| Sector | Losses (USD) | Description
|
| Agriculture | $1.3 billion | Losses from destroyed crops, burned land, displaced farmers, and livestock damage. |
| Housing-Real Estate | $3.2 billion | Damages to housing units, loss of rental income, and increased displacement. |
| Commerce | $1.9 billion | Losses from damaged establishments and supply chain disruptions. |
| Education | $215 million | Displacement of students and teachers, and closure of educational institutions. |
| Health | $412 million | Damaged hospitals, displaced healthcare workers, and increased health treatment costs. |
| Environment | $435 million | Destruction of ecosystems, forest fires, and increased pollution. |
| Tourism | $1.1 billion | Drastic drops in tourist arrivals, hotel occupancy, and destruction of heritage sites. |
| Water & Electricity | Over $700 million | Damage water facilities, power infrastructure, and reduced revenue collection. |
Source: InfoPro Research, “War Losses Report“, November 29, 2024.
Among these sectors, agriculture holds particular significance as it sustains the livelihoods of many Lebanese families, especially in the South. The region contributes substantially to the country’s agriculture output, including 30% of Lebanon’s olives as stated by the Food and Agriculture Organization of the United Nations (FAO). However, the ongoing conflict has devastated olive farming, which is central to both the economy and the cultural identity of the region.
The destruction of olive trees has been catastrophic. Reports from the National Council for Scientific Research (CNRS), and the Ministry of Agriculture highlight that approximately 65,000 olive trees were completely burned, and an additional 47,000 were destroyed by phosphorus bombs. Fires, fueled by intense bombardments, have scorched over 8 million square meters of agriculture land. As a result, farmers were not only displaced but also prevented from accessing their fields, particularly near the border strip. This disruption during the critical harvest season has led to a 12% reduction in olive harvest yields.
The economic fallout from these losses is substantial. Olive farming, including oil production and exports, is a significant source of income for many families. According to the World Bank, disruptions in the olive oil production chain have resulted in losses estimated at $58 million in olive oil related revenues. This figure underscores the widespread impact of the war on local economies, particularly in Southern Lebanon, where agriculture forms the backbone of daily life.
Environmental damage further compounds the crisis. The use of white phosphorus, confirmed by the CNRS, has left the soil contaminated with heavy metals and toxic compounds, reducing its fertility and increasing acidity. This degradation not only affects olive farming in the short term but also poses long-term challenges to agriculture recovery. Furthermore, the ecological balance has been disrupted, making rehabilitation efforts both expensive and slow.
The loss of olive trees transcends economic considerations; it represents cultural and historical blow to communities that have relied on these groves for generations. The war has not only destroyed a primary source of income but also endangered a vital symbol of Lebanon’s heritage. For many families the future remains uncertain as they grapple with the dual challenge of economic recovery and environmental restoration.
BY: Jana Boumatar
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