Reconstruction and recovery requirements following the conflict that affected Lebanon are estimated at $11 billion
The World Bank has unveiled a $1 billion initiative aimed at the reconstruction of Lebanon, as recently stated by the Lebanese prime minister’s office.
This initiative will allocate $250 million in the form of a loan, while the remainder of the financing will be sourced from international aid, the statement indicated.
The World Bank’s recent report estimates that the total cost for Lebanon’s reconstruction and recovery following the 14-month conflict stands at $11 billion. This war resulted in the loss of over 4,000 lives in Lebanon, displaced countless individuals, and left a trail of devastation across the nation.
The report from the World Bank’s Lebanon Rapid Damage and Needs Assessment detailed the damages and losses across ten sectors of the country, covering the period from October 8, 2023, to December 20, 2024. A ceasefire, brokered by the United States, was implemented in late November.
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Lebanon’s reconstruction needs $11 billion
Reconstruction and recovery requirements following the conflict that affected Lebanon are estimated at $11 billion, according to a Lebanon Rapid Damage and Needs Assessment (RDNA) 2025 report released by the World Bank. This report evaluates damage, losses, and needs across ten sectors throughout the country, covering the period from October 8, 2023, until December 20, 2024.
Breakdown of funding requirements
Of the $11 billion in reconstruction and recovery needs, the report estimates that $3 to $5 billion will necessitate public financing, including $1 billion for the infrastructure sectors (energy; municipal and public services; transport; and water, wastewater, and irrigation). Meanwhile, $6 to $8 billion will require private financing, primarily in the housing, commerce, industry, and tourism sectors.
Economic impact of the conflict
Supporting these needs estimates, the report assesses that the economic toll of the conflict on Lebanon is $14 billion. Damage to physical structures is valued at $6.8 billion, and economic losses from reduced productivity, foregone revenues, and operating costs amount to $7.2 billion. The housing sector has suffered the most, with damages estimated at $4.6 billion. The commerce, industry, and tourism sector has also faced considerable challenges, with losses estimated at $3.4 billion nationwide. Geographically, the Nabatiyeh and South governorates have been the most affected, followed by Mount Lebanon, which includes the southern suburb of Beirut.
Macroeconomic consequences
From a macroeconomic viewpoint, the report indicates that the impacts of the conflict have caused Lebanon’s real GDP to contract by 7.1% in 2024, a significant regression compared to a no-conflict growth projection of 0.9 percent. By the end of 2024, Lebanon’s cumulative GDP decline since 2019 is expected to approach 40 percent, compounding the effects of the multifaceted economic downturn and hindering Lebanon’s future economic growth prospects.
Methodology and collaboration
The Lebanon RDNA was conducted in response to a request from the Government of Lebanon to evaluate the impact across ten key sectors: Agriculture and Food Security; Commerce, Industry, and Tourism; Education; Environment and Debris Management; Energy; Health; Housing; Municipal and Public Services; Transport; and Water, Wastewater, and Irrigation. This assessment was carried out in close technical collaboration with the National Council for Scientific Research – Lebanon and in coordination with selected UN agencies and other development partners. The assessment adheres to the globally established and recognized Post-Disaster Needs Assessment methodology, which has been jointly developed by the European Union, the World Bank, and the United Nations.
This methodology has been applied worldwide in post-disaster and post-conflict scenarios to guide recovery and reconstruction planning. It employs a hybrid approach that utilizes a combination of ground- and remote-based data, including on-the-ground surveys, key informant interviews, sample visual inspections, satellite imagery, Synthetic Aperture Radar analysis, anonymized cellphone data, and social media analytics.
