War worsens Lebanon's economic crisis with job losses, price gouging and slow business

May 15, 2026 - 09:56

CHIYAH, Lebanon (AP) -- Ayman al-Zain stood silently as a bulldozer pushed aside the twisted metal and shattered concrete that was once his sports clothing store. The building was one of many leveled in Israeli airstrikes targeting Hezbollah positions. For al-Zain, the loss is not just personal. It is another blow to a country already drowning in economic collapse.

Lebanon's crisis, which began years before the latest conflict, has now worsened dramatically. The war has wiped out thousands of jobs, as businesses shut down or relocate. In markets across Beirut and the southern suburbs, price gouging has become routine. Basic goods like bread, medicine, and cooking gas now cost double or triple what they did just months ago. Shopkeepers blame supply chain disruptions and the collapse of the local currency, which has lost more than 95 percent of its value since 2019.

Small business owners like al-Zain have little hope of recovery. Without insurance or government aid, many are forced to close for good. The war has also scared off foreign investors and tourists, two lifelines for the service-driven economy. Meanwhile, the Lebanese pound continues to slide, and banks remain largely closed or unable to process transactions.

The United Nations estimates that the conflict has pushed over 300,000 people into poverty since October. For a nation where more than half the population already lived below the poverty line, the new numbers are devastating. Schools and hospitals are overwhelmed, and many families now rely on food aid to survive.

Al-Zain says he does not know how he will rebuild. For now, he just watches the rubble.