Lebanese Economy Minister Amin Salam issued a stark warning today about the severity of Lebanon’s economic situation, calling for a state of emergency in the country.
In an interview with Sputnik Radio, Salam detailed how the ongoing war in southern Lebanon threatens to plunge the economy into the unknown, citing the complete exhaustion of the public sector and government institutions.
Minister Salam highlighted that the conflict has exacerbated Lebanon’s economic crisis, rendering discussions of economic growth or prosperity in productive sectors impossible at this time.
He criticized Israel’s targeted destruction of Lebanon’s agricultural sector, noting that thousands of acres of farmland have been burned, which will cost the state billions of dollars to rehabilitate.
The minister also announced the indefinite suspension of Lebanon’s tourist season due to travel fears and the exodus of the workforce, further diminishing employment opportunities.
“The upcoming budget will be extremely challenging,” Salam said, adding that anyone who thinks Lebanon can endure this situation for more than a month is mistaken. He warned that the war could regress the country to the “Stone Age” and lead it into a perilous state.
Salam described Lebanon’s economy as “hanging by threads of air,” with the banking sector in perpetual paralysis and currency exchange rates fluctuating unpredictably between the central bank and relevant ministries.
He revealed that Lebanon has only a three-month food supply left, cautioning against potential targeting of air and sea facilities and a siege that could deprive citizens of water and food.
Lebanon is undergoing a severe phase without any preparations or readiness to withstand war, and the state has collapsed, losing its liquidity, currency, and banking capabilities, Salam noted.
He praised his ministerial team’s ability to adopt dollar pricing and halt corrupt platforms that manipulate currency exchange rates. However, he warned that the expanding war and unstable security and political situations could deteriorate the exchange rate at any moment.
Minister Salam mentioned a plan his ministry has developed to distribute food equally across all Lebanese territories, especially to areas where people have fled from Israeli bombings.
He emphasized that while the plan could help Lebanon withstand potential conflicts, it requires international funding to be effective.
