Jakarta, CNBC Indonesia – Lebanon now in crisis. Even the World Bank said the country is now experiencing the worst economic crisis in the world since the 1850s.
Quotes Trading Economics, the Lebanese economy contracted or negative 20.3% in 2021. A severe economic crisis has occurred over the last 18 months.
“This kind of brutal contraction usually occurs in conflict or war,” the World Bank said in its report citing Lebanon.
The local currency even fell to a record low against the dollar. The Lebanese pound sold for a record 19,500 to the US dollar, less than a tenth of its official rate, on the black market.
Lebanon’s foreign currency reserves are running low. Food inflation reached 400%.
Now, the lack of money in the country has an impact on the supply of medicine and energy. The pharmacies went on strike due to a shortage of drugs caused by failure to pay foreign importers.
The pharmacy owners’ association declared an ‘open strike’ across Lebanon. “80% of pharmacies are closed in Beirut and major cities,” said Ali Safa, a member of the association, quoted AFP, Monday (12/7/2021).
Not only that, the country’s main power plant was completely shut down due to a lack of fuel. Zahrani and Deir Ammar . power stations offline because they do not have access to fuel.
Ships loaded with oil and gas refuse to unload the fuel before it is transferred to the owner’s account in dollars. In fact, residents previously received only two hours of electricity a day, rationed for decades.
“Electricity supply has been cut across Lebanon indefinitely,” one resident was quoted as saying BBC.
Water is no longer easy to get, where residents get water allotments. Pump stations are powered by diesel, and lack the supply they need to function.
Quoting former adviser to the country’s finance ministry, Henri Chaoul, Lebanon is now on a ‘train to hell’. “Which will reach the final station,” he said to the CNBC International.
The country of 7 million people is called mismanagement. Even though this is not the first crisis, because Lebanon has experienced a similar crisis due to the civil war from 1975 to 1990.
(boss / boss)
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