Europe
2026.04.28 18:33 GMT+8

Israel-Lebanon ceasefire cannot reverse economic damage caused by war

Updated 2026.04.28 18:33 GMT+8
Evangelo Sipsas in Beirut

Lebanon's renewed ceasefire may have silenced the front lines for now, but away from the fighting, another battle is raging — the struggle to survive.

After months of trying to recover from the 2024 war, renewed clashes have once again forced families from their homes, pushed prices higher and shaken confidence in a country already trapped in an economic crisis.

In Beirut's Hamra district, the sound of sizzling oil, rushed orders and wrapped sandwiches tells a bigger story. Behind the counter, displaced shop owner Mohammad Maatouk is trying to keep his business alive while carrying the cost of a war that followed him from Dahieh to his doorstep.

"Before the war, things were cheaper than they are now," Mohammad says. "The situation has become much harder. Everything has gone up: oil, gas, vegetables, pickles, plastic."

For him, displacement is not only about leaving home. It is about trying to work in a city where every basic cost has climbed. Deliveries are harder. Roads feel less safe. Ingredients are more expensive. But raising prices too much risks driving away customers who are struggling just as much.

"We are still trying to feel with people, to feel their pain," he says. "Because we are part of the people."

A boy rides a bicycle past a burnt house in a neighborhood of Beirut’s southern suburbs. /Ibrahim Amro/AFP

Hamra has become one of the areas absorbing people displaced by renewed fighting from Dahieh, south Lebanon, the Bekaa and other affected areas. Its cafes, shops and streets may look busier, but experts warn this is not real recovery.

Economic expert and financial analyst Maan Barazy says the arrival of displaced families can create a short-term boost for cafes and supermarkets, but it does not mean the economy is healing.

"These people are not looking for jobs. They are not working," he says. "They are just sitting in cafes, waiting for the news."

What looks like business activity is often survival spending by people uprooted again. At the same time, renewed fighting is hitting tourism, trade, agriculture and infrastructure — the very sectors Lebanon needs to rebuild trust.

Barazy says optimism in the country has been "shattered," adding that Lebanon must now win back both consumer and investor confidence.

For Mohammad, this war is measured in two ways: the home he left behind in Dahieh, and the prices he faces every day in Hamra.

A ceasefire may pause the fighting, but it has not stopped the damage. Lebanon's fragile comeback has become another fight for survival.

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