{"id":6667,"date":"2026-05-15T16:02:06","date_gmt":"2026-05-15T16:02:06","guid":{"rendered":"https:\/\/siliconvalleymovingpost.com\/?p=6667"},"modified":"2026-05-15T16:02:06","modified_gmt":"2026-05-15T16:02:06","slug":"war-worsens-lebanons-economic-crisis-with-job-losses-price-gouging-and-slow-business","status":"publish","type":"post","link":"https:\/\/siliconvalleymovingpost.com\/?p=6667","title":{"rendered":"War worsens Lebanon\u2019s economic crisis with job losses, price gouging and slow business"},"content":{"rendered":"<div><p><strong>By MALAK HARB and KAREEM CHEHAYEB<\/strong><\/p>\n<p>CHIYAH, Lebanon (AP) \u2014 Ayman al-Zain watched on a recent afternoon as a bulldozer cleared the rubble of what used to be his sports clothing store, which was one of dozens of buildings destroyed in Israeli strikes against the Hezbollah militant group.<\/p><p>Read more <a href=\"https:\/\/siliconvalleymovingpost.com\/?p=6661\">Democrats test a new red state strategy: Back independents over their own nominees<\/a><\/p>\n<p>With a nominal truce in place that has reduced but not halted the fighting, Al-Zain tried to assess whether to rebuild the shop in Beirut\u2019s southern suburbs that he once hoped to pass down to his kids. But it\u2019s unlikely he will be able to do so anytime soon, and not only because of the fear of more airstrikes.<\/p>\n<p>\u201cEverything is expensive,\u201d he told The Associated Press. \u201cIf I want to open a new store and get mannequins, hangers and some accessories, the prices are very different than before.\u201d<\/p>\n<p>The U.S.-Israeli war with Iran, and the closure of the Strait of Hormuz, have sent economic shock waves across the Mideast. In Lebanon, those woes have been compounded by the country\u2019s existing economic problems and by largely unregulated markets that are vulnerable to price gouging.<\/p>\n<p>\u201cThis continues to be a major economic shock, one of honestly an existential nature,\u201d said Economy Minister Amer Bisat, who is part of the Lebanese Cabinet that came into office over a year ago on a reformist agenda.<\/p>\n<div><ul><div><div><li><div>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" alt=\"A bulldozer clears the rubble where a sports clothing shop was destroyed in an Israeli airstrike.\" class=\"wp-image-6663\" height=\"683\" src=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/504b45c3a39e3bc2edfd994f65a8ea5b-1024x683.webp\" width=\"1024\" srcset=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/504b45c3a39e3bc2edfd994f65a8ea5b-1024x683.webp 1024w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/504b45c3a39e3bc2edfd994f65a8ea5b-300x200.webp 300w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/504b45c3a39e3bc2edfd994f65a8ea5b-768x512.webp 768w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/504b45c3a39e3bc2edfd994f65a8ea5b-1536x1025.webp 1536w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/504b45c3a39e3bc2edfd994f65a8ea5b.webp 1859w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<div>A bulldozer clears the rubble where a sports clothing shop was destroyed in a previous Israeli airstrike in Chiyah, a southern Beirut suburb, May 6, 2026. (AP Photo\/Bilal Hussein)\n<\/div><\/div><\/li><li><div>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" alt=\"A man inspects his damaged car amid the rubble of shops destroyed in Israeli airstrikes.\" class=\"wp-image-6664\" height=\"683\" src=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/ca6d7c376292efb825b6d38b08d470f3-1024x683.webp\" width=\"1024\" srcset=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/ca6d7c376292efb825b6d38b08d470f3-1024x683.webp 1024w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/ca6d7c376292efb825b6d38b08d470f3-300x200.webp 300w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/ca6d7c376292efb825b6d38b08d470f3-768x512.webp 768w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/ca6d7c376292efb825b6d38b08d470f3-1536x1025.webp 1536w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/ca6d7c376292efb825b6d38b08d470f3.webp 1859w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<div>A man inspects his damaged car amid the rubble of shops destroyed in previous Israeli airstrikes in the Hosh neighborhood of Tyre, southern Lebanon, April 19, 2026. (AP Photo\/Bilal Hussein)\n<\/div><\/div><\/li><li><div>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" alt=\"People spend time at an almost empty bar on Hamra Street in Beirut.\" class=\"wp-image-6665\" height=\"683\" src=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/5072b1b0e21233d592a3825fd3d26902-1024x683.webp\" width=\"1024\" srcset=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/5072b1b0e21233d592a3825fd3d26902-1024x683.webp 1024w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/5072b1b0e21233d592a3825fd3d26902-300x200.webp 300w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/5072b1b0e21233d592a3825fd3d26902-768x512.webp 768w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/5072b1b0e21233d592a3825fd3d26902-1536x1024.webp 1536w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/5072b1b0e21233d592a3825fd3d26902.webp 1860w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<div>People spend time at an almost empty bar on Hamra Street in Beirut, May 5, 2026. (AP Photo\/Bilal Hussein)\n<\/div><\/div><\/li><li><div>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" alt=\"People spend time at an almost empty bar on Hamra Street in Beirut.\" class=\"wp-image-6666\" height=\"683\" src=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/2a30174373c3f8718770b7e8c3747cb1-1024x683.webp\" width=\"1024\" srcset=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/2a30174373c3f8718770b7e8c3747cb1-1024x683.webp 1024w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/2a30174373c3f8718770b7e8c3747cb1-300x200.webp 300w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/2a30174373c3f8718770b7e8c3747cb1-768x512.webp 768w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/2a30174373c3f8718770b7e8c3747cb1-1536x1024.webp 1536w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/2a30174373c3f8718770b7e8c3747cb1.webp 1860w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<div>People spend time at an almost empty bar on Hamra Street in Beirut, Lebanon, May 5, 2026. (AP Photo\/Bilal Hussein)\n<\/div><\/div><\/li><\/div><\/div><\/ul><div><div>A bulldozer clears the rubble where a sports clothing shop was destroyed in a previous Israeli airstrike in Chiyah, a southern Beirut suburb, May 6, 2026. (AP Photo\/Bilal Hussein)\n<\/div><span>Expand<\/span><\/div><\/div>\n<h4>Problems have piled up for years<\/h4>\n<p>Since 2019, the tiny Mediterranean country has been in the throes of an economic crisis that pulverized the value of its local currency and its banking system.<\/p>\n<p>That\u2019s when Lebanese banks collapsed, which evaporated depositors\u2019 savings and plunged about half of the population of 6.5 million into poverty, after decades of rampant corruption, waste and mismanagement. The country suffered some $70 billion in losses in its financial sector, further compounded by about $11 billion in the 2024 war between Israel and Hezbollah, according to the World Bank. The Lebanese pound has since lost over 90% of its value against the U.S. dollar.<\/p> <div>\n<\/div>\n<p>The cash-strapped state electricity company provides only a few hours of power a day, and most Lebanese rely on diesel generators to make up the difference. That makes the economy particularly vulnerable to fuel price increases.<\/p>\n<p>Lebanon was already \u201cgrappling with multiple rounds of crises,\u201d said Mohamad Faour, professor of finance at the American University of Beirut. \u201cSo this round of war only made an already fragile situation more fragile.\u201d<\/p>\n<p>With this new war, 1.2 million Lebanese have been displaced, largely from southern Lebanon and Beirut\u2019s southern suburbs. Many are sheltering in schools with no work or draining whatever money they have renting out apartments or hotel rooms.<\/p>\n<h4>Economy suffers job losses and crippling inflation<\/h4>\n<p>In an interview with the AP from his office, Bisat estimated that the country faces an economic loss of around 7% of its gross domestic product due to the war because \u201ccompanies are closing, people are losing their jobs, tourists are not showing up.\u201d<\/p> <div>\n<\/div>\n<p>Evidence of inflation abounds.<\/p>\n<p>In the usually bustling produce market in Sabra, south of Beirut, vendor Ahmad al-Farra looked dejected as an elderly woman shopping for watermelon, tomatoes and potatoes walked away without buying anything after checking the price tags.<\/p>\n<p>Prices have spiked since the U.S. and Israel launched a war against Iran on Feb. 28, followed quickly by a resurgence of war between Israel and Hezbollah.<\/p>\n<p>\u201cWe\u2019re keeping our prices low so we can sell, and even then we\u2019re not selling,\u201d al-Farra said as the sound of an Israeli drone whizzed overhead.<\/p><p>Read more <a href=\"https:\/\/siliconvalleymovingpost.com\/?p=6659\">Such great heights: They\u2019re tall, they\u2019re proud \u2014 and they\u2019re getting together<\/a><\/p>\n<p>Even consumers who can afford to spend are anxious and cutting back on nonessential purchases, leaving many businesses empty.<\/p>\n<p>Riad Aboulteif, who runs several restaurants and bars in the capital, said his revenue has dropped by some 90% since the war began, as Lebanon\u2019s shrinking middle class cuts costs.<\/p>\n<p>People are saving more money for their survival and not making plans to celebrate birthdays or other special occasions, he said at one of his bars in the bustling Hamra district of Beirut, where the loud chatter of customers once overpowered the jazz music coming through the sound system.<\/p>\n<p>That night, only a few tables were occupied. He\u2019s had to downsize his staff and restructure his menus to offer more affordable items.<\/p>\n<h4>War fuels price gouging<\/h4>\n<p>Meanwhile, the country\u2019s bankrupt government has struggled to crack down on unfair and illicit profiteering and the hoarding of fuel and other essential items.<\/p>\n<p>Many agricultural areas in southern and eastern Lebanon are no longer accessible because of airstrikes and clashes, but al-Faraa believes suppliers have raised prices beyond what is necessary to cover cost increases.<\/p>\n<p>Some of the starkest increases have been in generator bills.<\/p>\n<p>Families and businesses for years have paid multiple utility bills to cover privately supplied electricity and water in the absence of government services. Neighborhood generator owners charge a monthly fee, and some landlords have their own generators and charge the cost to tenants.<\/p>\n<p>Frustrated business owners have said that generator bills have doubled at times, forcing them to shorten their hours of operation or even close on some days to cut costs.<\/p>\n<p>\u201cIf we didn\u2019t take these measures, we cannot continue,\u201d Aboulteif said.<\/p>\n<p>Bisat said his ministry has conducted over 4,000 inspections of private generators, gas stations and shops across the country since the start of the war in March and lodged dozens of complaints to the courts. But the issue will not be quickly resolved.<\/p>\n<p>In the meantime, the government has little ability to crack down on the handful of companies that import and distribute fuel and other goods.<\/p>\n<h4>No sign of relief on the horizon<\/h4>\n<p>With no end to the war in sight, the economic situation shows no sign of easing.<\/p>\n<p>A tenuous ceasefire is in place between the U.S. and Iran, but talks between Washington and Tehran are gridlocked. A nominal truce between Israel and Hezbollah has reduced but not stopped the fighting in Lebanon.<\/p>\n<p>For now, Lebanese families and business owners are confronting the challenges day by day and hoping for the best.<\/p><p>Read more <a href=\"https:\/\/siliconvalleymovingpost.com\/?p=6648\">Research analyst from Iran found her voice at Santiago Canyon College<\/a><\/p>\n<p>\u201cOnly God knows how we\u2019ve been trying to manage ourselves,\u201d al-Farra said.<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>In Lebanon, war has worsened woes compounded by existing economic problems and largely unregulated markets vulnerable to price gouging.<\/p>\n","protected":false},"author":1,"featured_media":6662,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,2],"tags":[],"class_list":["post-6667","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-facts","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - 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