Since the onset of the economic crisis in 2019,Lebanon has endured a cascade of severe challenges that have drastically altered the landscape of everyday life for its citizens. The crisis, triggered by a combination of financial mismanagement, political corruption, and a volatile regional environment, has led to unprecedented levels of inflation, a dramatic devaluation of the Lebanese pound, and a sharp decline in the purchasing power of the population. Daily life has become a struggle for many, with basic necessities like food, fuel, and medicine becoming increasingly scarce and unaffordable.
Headwinds
The situation has been further exacerbated by the prospects of war with Israel, which have fuelled instability and insecurity, but did not discourage both domestic and foreign investment. Additionally, the devastating explosion at the Beirut port in August 2020 dealt a crippling blow to the economy, destroying a significant portion of the city’s infrastructure, displacing thousands of residents, and causing billions of dollars in damages. The explosion also shattered public confidence in the government, which was already at a low point due to the ongoing financial crisis.
