Lebanon’s economy is under serious threat from the ongoing conflict, with both the public and private sectors facing mounting pressure, the head of the country’s economic bodies warned on Friday.

Mohammad Shoukeir, head of Lebanon’s Federation of Economic Bodies, said data collected from trade unions and business associations show that most sectors are experiencing a sharp slowdown, while public administration is nearly paralyzed across large parts of the country, including the capital, Beirut.

“The main challenge lies in the added pressure on public finances, as government spending rises while revenues fall,” he said in a statement.

Shoukeir cautioned that if the war continues, hundreds of businesses could close and thousands of Lebanese could lose their jobs, further deepening the nation’s social and economic crisis.

“I fear the national economy could once again spiral into crisis and collapse,” he said.

According to Shoukeir, the economic impact is widespread:

• Commercial Sector: Activity has fallen by about 50 percent, driven by a 60–80 percent drop in sales of non-essential goods, while demand for essentials has remained near normal levels.

• Industrial Sector: Output has decreased roughly 50 percent due to the shutdown of factories in the south, Beirut’s southern suburbs, and parts of the Bekaa Valley, coupled with stalled exports to Gulf countries.

• Agriculture: Agricultural production has fallen by about 40 percent, with major disruptions in the south and Bekaa, along with halted exports to the Gulf.

• Hotels: Occupancy rates have dropped to 10–15 percent as inbound tourism collapses and reservations are canceled.

• Restaurants and Nightlife: Restaurant activity has declined by nearly 90 percent, and nightlife venues are largely inactive due to security concerns.

• Tourism and Travel Agencies: Operations have fallen around 80 percent, mostly limited to cancellations or rescheduling.

• Service Sector: Activity is down 40–50 percent.

• Car Rentals: Business has fallen by more than 95 percent.

• Real Estate: Sales have nearly stopped amid a lack of demand.

Shoukeir highlighted the broader financial toll of the conflict, including disruptions in supply chains, rising inflation, and reduced consumer spending.

“The ongoing war threatens to undo the modest gains achieved last year and risks pushing Lebanon into another period of economic contraction,” he said.

Shoukeir urged an immediate cessation of hostilities, the surrender of weapons to the Lebanese state, and full support for the country’s constitutional institutions.

“All citizens must stand united behind the Lebanese army, enabling it to maintain civil peace, ensure security, and extend state authority across the country,” he said.