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The disaster underscores the need to provide a complimentary package of services, including immediate, emergency social safety net support and interventions to the poorest, most vulnerable and affected households.
The World Bank reported on Monday that in the aftermath of the Beirut's blast, damages could be around $3.8 to 4.6 billion as housing and culture are the sectors more severely affected.
The joint report between the World Bank Group (WBG), the United Nations (UN), and the European Union (EU) is a rapid assessment of the damages and needs.
The study estimates the losses of around $2.9 to $3.5 billion. In this sense, housing is the most affected sector, followed by transport and culture.
Among all the damage in housing assessed, at least 22.000 low-income residential are the most devastated by the explosions.
Furthermore, the international organizations point out that the recovery and reconstruction will require $1.8 to $2.0 billion, mainly for transport infrastructure followed by culture and housing.
The World Bank explains that the economic impact of the explosions will hardly rebound in the months to come. It is estimated that due to the destruction of physical capital, up to 0.4 and 0.6 percentage point will decline in the growth rate of real GDP in 2020 and 2021, respectively.
These figures surpass "the double-digit contractions in real GDP growth stemming from the pre-existing economic and financial crisis and COVID-19 effects," the report highlights.
The study also points out that there will be higher inflation as a consequence of disruptions in trade, resulting in higher transaction costs of external trade. The World Bank also forecast higher poverty rates.
On the other hand, the health sector reports damages between $95.0 to 115.0 million. Particularly 292 out of 813 health facilities were affected, including private and public buildings as well as primary healthcare centers. Damages in hospital buildings alone range from S$ 75.0 to 90.0 million.
Besides, the study remarks that "in the absence of a national cash transfer program or a national social protection strategy, the disaster underscores the need to provide a complimentary package of services, including immediate, emergency social safety net support and interventions to the poorest, most vulnerable and affected households."