Hadi Soubra, Vice President of the Lebanese Companies Association, issued a press statement announcing a steady deterioration in the Lebanese economy due to the current war. Sobra estimated the amount of direct and indirect losses at about $100 million per day.
Soubra stated that Lebanon is facing great difficulties in absorbing these accumulated burdens, in addition to the destruction estimated at billions of dollars and the losses previously recorded during the year 2024. He pointed out that a state of comprehensive recession is sweeping various sectors, especially service sectors such as tourism, restaurants, and car rental, in addition to the real estate sector and luxury goods trade, which witnessed a decline of rates ranging between 70 and 75%.
He also pointed out that the decline in purchasing power and the decline in incomes have brought domestic consumption to its lowest levels. He warned that if the war continues until the end of April, the economic contraction will likely exceed 2% by the end of 2026. He also pointed to the impact of the recession on the public sector, especially with the 2026 budget estimated at $6 billion and wage expenditures rising by about $800 million.
Soubra concluded his statement by warning against exploiting the state’s account in Lebanese pounds at the Bank of Lebanon, stressing that injecting this money into the market will lead to inflation of the monetary supply, which will reflect negatively on the dollar exchange rate.
