Lebanon’s deep economic crisis has intensified as renewed regional conflict and Israeli strikes devastate businesses and displace families. The country, already reeling since 2019 from a financial collapse that wiped out savings and devalued its currency by more than 90 percent, is now facing fresh destruction, job losses and rising poverty. Entire neighborhoods in Beirut’s southern suburbs have been reduced to rubble, leaving shop owners uncertain if they can afford to rebuild amid soaring costs.

The war has compounded long standing structural failures, including a crippled banking sector and unreliable public electricity that forces residents to rely on costly private generators. The government estimates the conflict could shrink gross domestic product by about 7 percent as companies close, tourism disappears and unemployment rises. Around 1.2 million people have been displaced, many sheltering in schools or spending dwindling savings on temporary housing.

Inflation and price gouging are adding to the strain. Food, fuel and generator fees have surged, while consumer spending has plummeted as households prioritize essentials. Although authorities have conducted thousands of inspections to curb profiteering, enforcement remains limited. With no clear end to the fighting, businesses and families say they are struggling day by day with little sign of economic relief ahead.