70% of Lebanese Struggling as Salaries Fall Short of Meeting Basic Needs

In Lebanon, the question is no longer "How do we live?" but rather, "How do we survive?" The economy resembles quicksand, swallowing purchasing power, while wages remain stuck in another era, unable to catch up with the soaring costs of basic goods.

Every day, Lebanese citizens engage in a silent battle with bills, reviewing their finances like a gambler examining their last hand, fully aware that the odds are against them, yet with no choice but to continue. Meanwhile, prices surge like an untamed beast, racing against time, doubling before citizens can even catch their breath, while their wages remain fixed.

The Central Administration of Statistics, in collaboration with the World Food Programme, reported in November 2024 that the minimum cost of survival for a family of five reached 40.5 million Lebanese pounds ($449), while the cost of meeting basic needs climbed to 50.3 million Lebanese pounds ($559), marking an annual increase of 19% to 23%. These numbers reflect not just economic inflation, but a grim reality where securing a bare minimum for survival has become a daily struggle for the most vulnerable.

Despite some goods stabilizing slightly, the cost of the minimum food basket per individual rose to 3.41 million Lebanese pounds ($37.6), a 10% increase compared to the previous year. The cost of non-food goods and services, however, surged even faster, with the minimum non-food basket for a family reaching 23.5 million Lebanese pounds, a 28% annual increase.

With these rising costs, the question remains: Are the aid programs sufficient to cover these growing expenses? The reality says otherwise. The "Aman" program from the World Bank, which provides some of the poorest families with $20 per person per month for food and $25 per family for other expenses, now covers only 53% of food needs, down from 58% last year. Meanwhile, it covers just 10% of non-food expenses.

According to the study, the Consumer Price Index (CPI) recorded a monthly increase of 2.3% in November 2024, with quarterly inflation reaching 4.2%, while the annual inflation rate stood at 15%, the lowest level since February 2020. However, this does not indicate any significant improvement, but rather a relative stability in the ongoing crisis.

Food prices rose by 3%, although the increase slowed compared to the previous month, while the erosion of purchasing power for food reached 23%. Energy prices saw a slight increase of 0.1%, but the largest surge was in the water, electricity, gas, and fuel sector, which jumped by 8.4%, driving the inflation rate higher.

Amid these escalating figures, which paint a picture of poverty in Lebanon, a glaring paradox emerges: one group is struggling day and night to secure a livelihood, while another benefits from external aid as a lifeline for survival. The report prepared by the Central Administration of Statistics, in collaboration with the World Food Programme, highlighted the growing needs of the Lebanese, but also shed light on the reality of Syrian refugees, who, despite their difficult circumstances, receive consistent cash assistance from the United Nations. This assistance may, in some cases, enable them to meet their daily needs better than Lebanese citizens, who find themselves trapped by salaries that cannot keep up with inflation.

Given this context, do these figures reflect the full truth? To assess their accuracy, Addiyar newspaper reached out to Mohammad Chamseddine, a researcher at Information International, who pointed out that "figures vary depending on the methodology used." While Information International relies on the traditional concept of spending and income as poverty criteria, the Central Administration of Statistics follows a different path, basing its estimates on the concept of 'multidimensional poverty,' which includes factors such as education, health, and access to basic services, not just income."

Amid these two approaches, the Lebanese scene sways between the poverty reflected by bills and relentless expenses and the hidden poverty described by indicators. However, this hidden poverty extends beyond the data to a lived reality. Are we facing calculations that reflect the essence of the crisis, or does each party interpret poverty from its own perspective, leaving citizens lost between equations and percentages? The only undeniable truth is that life in Lebanon has become an existential battle with no ceasefire.

In this context, Chamseddine explained to Addiyar that "the inflation we are currently witnessing has caused prices to rise by between 10% and 25% over the past two years, despite the stability of the dollar exchange rate."

He estimated that "around 30% of Lebanese people are able to meet their basic needs and live relatively stable lives thanks to their salaries, while 70% of the population finds that their wages are insufficient." However, he clarified that "not all of these individuals are in dire need, as many rely on remittances from abroad to cover the gap in their salaries."

"When we say that poverty rate in Lebanon is approximately at 55%, and then international organizations such as the World Bank or the IMF claim that the poverty rate is 85%, the difference lies in the criteria used. We rely on the traditional concept of poverty based on income, while international bodies use a new concept known as 'multidimensional poverty.' According to this classification, an individual is considered poor if they do not have savings, a bank account, or health insurance, even if their income covers their basic needs."

"In our statistics, we use the traditional concept of poverty, based on income levels. Therefore, looking at current salaries and wages, and the rising costs of goods and services, including electricity, telecommunications, and public service fees such as phone and mechanical registration, it is clear that the cost of living has become burdensome. For example, the state water bill recently reached around 16.5 million Lebanese pounds annually, or more than 1.2 million Lebanese pounds monthly. However, this amount is insufficient due to frequent interruptions in water supply, forcing citizens to purchase additional tankers and bottled water. Based on this, I confirm that 70% of Lebanese salaries are no longer sufficient to cover their basic needs."

In conclusion, the Lebanese face an ever-deepening economic crisis, where daily survival has become a struggle against rising costs and stagnant wages. While aid programs and remittances provide some relief, the nation's ability to withstand this economic hardship remains uncertain.