Currently, the economy of Lebanon is crashing its way through a complete once-in-a-century total collapse.
Due to the massive hyperinflation and the entirely inconsistent power supplies and generation in the wake of a massive explosion out in Beirut this past year, Lebanon may just be witnessing, and tripping its way through, one of the worst three economic depressions since the start of the nineteenth century, as reported by sources from the World Bank.
The World Bank went on to explain:
Lebanon’s GDP plummeted from close to US$ 55 billion in 2018 to an estimated US$ 33 billion in 2020, with US$ GDP/ capita falling by around 40 percent. Such a brutal and rapid contraction is usually associated with conflicts or wars.
This illustrates the magnitude of the economic depression that the country is enduring, with sadly no clear turning point on the horizon, given the disastrous deliberate policy inaction.
The social impact of the crisis, which is already dire, could rapidly become catastrophic; more than half the population is likely below the national poverty line. Lebanon, with a history of civil war and conflicts, faces realistic threats to its already fragile social peace.
Also as reported by The Wall Street Journal:
Power outages have become so frequent that restaurants time their hours to the schedule of electricity from private generators. Brawls have erupted in supermarkets as shoppers rush to buy bread, sugar, and cooking oil before they run out or hyperinflation topping 400% for food puts the prices out of reach. Medical professionals have fled just as the pandemic hammers the country with a new wave of infections. Thefts are up 62% and murder rates are rising fast.
The Beirut explosion, in combination with a series of massive COVID-induced issues, massively accelerated the complete economic decline of Lebanon. Over a hundred citizens passed away in the blast along with the injury of over another 4,000 others flooded the countries hosp[itals. Well over 300,000 were left entirely homeless due to the dozens of buildings collapsing or experiences such severe damage as to be condemned.
Hassan Diab, the Lebanese Prime Minister, along with the rest of his advisers, resigned during the massive protests in the wake of the explosion: “I set out to combat corruption, but I discovered that corruption is bigger than the state… I declare today the resignation of this government. God bless Lebanon.”
Multiple experts and analysts have also reported and wanted that this disaster would plunge Lebanon into a “failed state” status.
“Not only do we have an absence of government and a political vacuum, but we’re going to have a severe problem with the function of the state of Lebanon,” Imad Salamey, a Lebanese American University political scientist, stated to The Wall Street Journal. “We are heading toward the unknown.”