Poverty In Lebanon Tripled Over Last Decade: World Bank

Over the past decade, poverty in Lebanon has surged dramatically, more than tripling to reach a staggering 44 per cent of the population, as per a report by the World Bank released recently. The study, conducted across five of Lebanon's eight governorates, unveiled a stark rise in poverty from 12 per cent in 2012 to the alarming rate recorded in 2022, showcasing notable variations across different regions of the country.

While Beirut witnessed a decline in poverty from 4 to 2 per cent over the decade, the situation in the largely overlooked Akkar region in the north worsened significantly, with the poverty rate soaring from 22 to 62 per cent.

Furthermore, the report shed light on the profound disparities between Lebanese citizens and the substantial population of Syrian refugees residing in the country. While the poverty rate among Lebanese reached 33 per cent in 2022, it surged to a staggering 87 per cent among Syrian refugees during the same period.

However, when accounting for various factors such as access to essential services like electricity and education, alongside income levels, termed as "multidimensional poverty," researchers found that a striking 73 per cent of Lebanese nationals and a staggering 100 per cent of non-Lebanese residents were classified as poor.

This report provides the most comprehensive overview of poverty levels since the onset of Lebanon's economic crisis in 2019, characterised by currency devaluation, soaring inflation and a sharp decline in the country's gross domestic product (GDP). Many Lebanese individuals saw their life savings vanish as the value of the currency plummeted, aggravated by banks restricting access to most depositors' savings.

Despite widespread calls for intervention, the path out of the crisis remains elusive. While an International Monetary Fund (IMF) bailout is seen by many as a viable solution, Lebanese officials have made limited progress on the reforms necessary to secure the deal since reaching a preliminary agreement in 2022.

A recent visit by an IMF delegation to Beirut highlighted some progress on monetary and fiscal reforms. However, the IMF noted that these measures fell short of the comprehensive action required to facilitate a meaningful recovery from the crisis.

Ernesto Ramirez Rigo, the head of the IMF mission, emphasised that Lebanon's ongoing refugee crisis, tensions with Israel along its southern border, and the repercussions of the conflict in Gaza have compounded an already dire economic situation, further exacerbating the challenges faced by the country.