Lebanon’s economy has been on a turbulent journey in recent years, with a tripartite crisis affecting its banking, economy and currency sector.

Israel’s recent war has intensified challenges, leaving Lebanon wrestling with destruction and uncertainty.

To understand the current economic scene, it is necessary to look back in the main events over the past decade.

“WhatsApp Tax”, 2019

Although the 2019 protests were initially driven by the necessity of WhatsApp calls, the main reason is the deep anger of the failed policies of the government, mismanagement, corruption, deep economic inequality.

The public’s confidence in the government was declining for years, driven by controversial financial policies and the Central Bank of “Financial Engineering” in 2016 – complex trade -offs, issuing financial tools to attract foreign currency and inject liquidity into the banking system.

The constant deficit in the budget and the salaries of the enlarged public sector – which is enhanced by a significant increase in salaries in 2018 – was affected by additional confidence.

The resulting economic hardship sparked October 2019 protests and revealed the economic fragility in the country.

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In March 2020, the government of Prime Minister Hassan Diab failed its sovereign debt, just as it struck the Covid-19s, which led to the disruption of global supply chains and the exacerbation of weaknesses in Lebanon.

The epidemic has tense the already weak health care system, which led to a decisive shortage of hospital family and basic medicines.

Its dependence on tourism and transfers made Lebanon particularly vulnerable to global economic deflation.

Beirut Port explosion, 2020

In August 2020, one of the most powerful nuclear explosions in history destroyed Beirut.

In addition to the widespread destruction and loss in the capital, the explosion revealed corruption and deep negligence that led to an increase in public confidence in the government.

It also does not strongly inhibit foreign investment, which already stabilizes risky mode.

The Lebanese pound went to the free fall throughout the year 2020, prompting inflationary inflation and erosion of the purchasing power of people.

Then, in 2022, Russia invaded Ukraine, as it raised the global fuel chains and foodstuffs that affected countries around the world.

In Lebanon, the number of intense economic pressure has already increased on families, which was struggling to maintain basic living standards as the government has increasingly struggled to provide the most important services – and above.

Sally Hafez: “The Miracle Woman” demands her money

Since the banking sector deepens the turmoil starting in 2019, and in the third quarter of that year, banks began to restrict people to their deposits severely.

Then in September 2022, Sally Hafiz took a duties and an endeavor Beirut Bank to reach its savings. Immediately, it became a symbol of the suffering that many Lebanese are going through, and they began to call “the miracle woman”.

These guaranteed crises created an ideal storm, leaving Lebanon, swinging on the brink of collapse.

Several families were forced to sell precious, dear things, while relying on external transfers. However, this lifeline was not enough for many.

Despair was fueled by an increase of Lebanese, including skilled professionals, immigration – the exit of “boat personnel” who are trying to risk sea trips to become a blatant symbol of the nation’s despair.

In the third quarter of 2019, the government created a dual exchange rate system – an official price and a free market price – and a price bishop imposed on some commodities, including fuel and medicines.

This led to the lack and development of the black markets of these goods, starting in 2020 and escalating into large -scale queues and widespread anger by 2021.

Thus, by the end of 2022, at the end of the mandate of President Michel Aoun and the resignation of the government of Prime Minister Naguib Mikati, the failure to pay the debt is a pandemic, the Port explosion, the low value of the currency, and the raising of global prices have led to unprecedented economic and social distress.

A glimmer of intermittent hope

In 2023, the government stopped printing the lira papers, which helped the exchange rate stability. In parallel, price controls were raised in the previous year, and the shortcomings and black markets ended.

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However, this hope did not last long as Hezbollah began to involve Israel on October 8, after October 7, 2023, events in Gaza. After months of commercial attacks on the border, Israel launched a large -scale attack on the country in September 2024, leaving the matter destroyed by the end of the year.

The resulting destruction was huge, as it was estimated by the World Bank of about $ 3.4 billion, while economic losses, including lost productivity and commercial turmoil, amounted to an additional $ 5.1 billion.

Completely, it represents 40 percent amazing from local product Lebanon (GDP).

The conflict disrupted trade and deterring foreign investment, which exacerbated the existing challenges – which hindered the destroyed infrastructure, transportation and logistical services, which strongly affects companies almost almost almost almost almost almost almost.

Hezbollah separated

Hezbollah has played a major role in Lebanese society for decades, as it provided financial and social support for the support base in the southern suburb of Beirut, south and north of Becca Wadi.

But its role has deteriorated significantly due to the war, “separating” its contributions to the economic system effectively, which is likely to negatively affect those who depend on its support.

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Although the full economic impact was not yet clear, this may lead to more social and economic instability, especially given that Israel focused its devastating attention on the areas where Hezbollah’s support base – deprived of Hezbollah’s support.

Hopes in the future

Lebanon has a new government during the era of President Joseph Aoun and Prime Minister Nawaf Salam, and the hopes are based on a renewed political will to implement difficult reforms, given that the new government enjoys the reformulation of popular legitimacy.

Among the possible ways that the new government can explore is banking reform, increase trade and foreign investment, and increase its attractiveness as a companies ’destination.

However, it faces tremendous challenges posed by the deep problems that Lebanon plagued for at least a decade.

What remains is whether it will be able to implement economic reforms, maintain political stability, and move the complexities of the regional geopolitical scene.

In the end, the success of these efforts will directly affect the Lebanese people, especially the most vulnerable, in a context in which the poverty rate has increased significantly since 2019.

Failure to surrender can exacerbate the daily struggle for a decent life, pushing more citizens towards desperate measures, including increasing immigration and extinguishing the brain, which increases the erosion of the social fabric in the country.

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