Lebanon Faces Economic ‘Catastrophe’ After War and Years of Mismanagement

For decades, Abdelnaser Ossman has grown grapes at his family’s expansive farm in Lebanon’s Bekaa Valley, tilling the soil through years of drought, war and economic turmoil. But this year the pressures have become overwhelming. His costs have soared and profits have plunged since the war between Israel and Hezbollah, the Iran-backed Lebanese militant group, began in March. Fuel and fertilizer prices have doubled and labor costs have quintupled, while the price his harvest fetches has dropped by half.

Mr. Ossman, 55, has rented out part of his land to help make ends meet and is considering selling parts of his farm. “This year has been a catastrophe,” he said. “This is the hardest year of them all.” Lebanon is facing a deepening economic crisis caused by years of mismanagement and exacerbated by a conflict that has killed thousands , displaced hundreds of thousands more and left entire towns in ruins . The U.S.-Israel war with Iran that began in February has only added to the economic challenges.

Image People in Beirut in July demand access to their savings, which were lost after Lebanon’s banking sector began to collapse seven years ago. Credit... Laura Boushnak for The New York Times The data is stark. The World Bank forecasts inflation as rising more than 17 percent in Lebanon this year, driven by supply disruptions, higher shipping costs and soaring fuel prices. It also predicts that the economy will contract by 6.4 percent.

For many Lebanese, economic survival is the overriding concern, as they struggle to afford basic necessities and fuel amid joblessness and low wages. The crisis threatens to derail the fragile progress made by Prime Minister Nawaf Salam, who took office last year with ambitions to overhaul the economy. The government faces mounting public anger, unions threatening to strike and growing demands for a lasting overhaul of financial policy.

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