Report: Limited Access to Cash Income in USD Worsening Food Insecurity of the Poor

Lebanon's ongoing economic crisis and the escalating cross-border conflict between Hezbollah and Israel are exacerbating food insecurity across the country. According to a recent report by FEWS NET, a USAID-funded activity, the nation is experiencing widespread Stress (IPC Phase 2) outcomes, with the hardest-hit areas likely facing Crisis (IPC Phase 3) conditions.

IPC Phase 2 indicates households have minimally adequate food consumption but cannot afford some essential non-food expenditures without engaging in irreversible coping strategies, while IPC Phase 3 signifies households either face food consumption gaps resulting in high or above-usual acute malnutrition or can only meet minimal food needs by depleting essential livelihood assets or through crisis-coping strategies.

In the North governorate and the northeastern regions, which host large refugee populations, both refugee and host communities are struggling to find income-earning opportunities. This situation is worsened by cuts to humanitarian food assistance.

Southern Lebanon is witnessing severe disruption due to ongoing conflict. Protracted population displacement and disruption of livelihoods, including crop production, are evident. Many households nationwide are forced to cut essential non-food expenditures, such as healthcare, to meet their food needs. The poorest families are resorting to severe coping strategies, such as sending children to work or reducing food consumption among adults.

As of mid-July, approximately 100,000 people have been displaced in southern Lebanon, with over 60 percent of them remaining in safer districts of the South and El-Nabatieh governorates. Others have relocated to Beirut, Mount Lebanon, Baalbak-El Hermel, and even as far as Bekaa, Akkar, and North governorates. Most internally displaced persons are living with host families. Around 60,000 civilians still reside in areas along active frontlines in southern Lebanon.

Despite the rapid expansion of a dollarized cash-based economy, those without access to dollars are increasingly vulnerable to inflation. Rising retail prices of food and non-food essentials priced in dollars impact even those earning wages in dollars, though to a lesser extent, the report concluded. 

For households relying on local currency or informal economic activities, the rising costs of goods and services due to inflation erode their purchasing power. As a result, these households may struggle to meet their food needs and are forced to cut back on essential non-food expenditures like healthcare or education. This situation forces many to adopt severe coping strategies, such as reducing food consumption or sending children to work.