Poverty Triples in Lebanon as Financial Crisis Ravages Country

The World Bank reports a staggering rise in poverty in Lebanon, with 44% of the population now living below the poverty line, a threefold increase since 2012. The country's economic crisis has ravaged the lives of citizens, with inflation skyrocketing and life savings evaporating.

The World Bank has issued a stark warning, revealing a dramatic increase in poverty in Lebanon. According to their report, the percentage of Lebanese living below the poverty line has soared from 12% in 2012 to 44% in 2022. This alarming figure represents a threefold increase, reflecting the devastating impact of the country's protracted financial crisis.

The World Bank's report, based on surveys conducted in five of Lebanon's eight governorates, provides the most comprehensive snapshot to date of the economic plight of the country's citizens since the crisis began in late 2019. However, it should be noted that the data is incomplete, as surveyors were not granted access to three governates in the south and east of the country.

The findings reveal sharp disparities in poverty levels across different regions of Lebanon. In the Beirut governate, poverty has actually declined from 4% to 2% of the population during the decade surveyed. Conversely, in the neglected Akkar region in the north, the poverty rate has surged from 22% to a staggering 62%.

The report also highlights a stark divide between Lebanese citizens and the country's large population of Syrian refugees. The poverty rate among Lebanese in 2022 was 33%, while among Syrians it reached an alarming 87%.

The survey found a significant increase in the percentage of Lebanese working in unskilled jobs such as agriculture and construction. However, it also noted that most Lebanese still work in skilled jobs, while the majority of Syrians perform unskilled labor.

The World Bank's report also assessed "multidimensional poverty," which considers access to services such as electricity and education in addition to income. It found that approximately 73% of Lebanese and 100% of non-Lebanese residents of the country qualify as poor under this metric.

The financial crisis has had a devastating impact on Lebanon's economy. The currency collapsed in late 2019, inflation skyrocketed, and GDP plummeted, effectively wiping out the life savings of many Lebanese citizens.

Initially, many saw an International Monetary Fund (IMF) bailout as the only solution to the crisis. However, progress on the required reforms has been sluggish. A recent IMF delegation visiting Beirut acknowledged some progress on monetary and fiscal reforms but emphasized that they "fall short of what is needed to enable a recovery from the crisis."

The report also highlighted concerns about governance, transparency, and accountability, adding that reforms in these areas have been "limited." Without a comprehensive overhaul of the banking sector, the IMF warns that the "cash and informal economy will continue to grow, raising significant regulatory and supervisory concerns."

The World Bank estimates that the cash economy now accounts for 46% of Lebanon's GDP. This has created fertile ground for money laundering and raised concerns that Lebanon could be placed on the Financial Action Task Force's "grey list" of countries with a high risk of money laundering and terrorism financing.