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Lebanon’s economy has been on a turbulent journey in recent years, with a triple crisis affecting its banking sector, economy, and currency.

Israel’s recent war on the country only intensified the challenges, leaving Lebanon grappling with destruction and uncertainty.

To understand the current economic landscape, it is essential to look back at key events over the past decade.

The ‘ WhatsApp tax ‘ protests, 2019

Although the 2019 protests were initially prompted by a proposed tax on WhatsApp calls, the underlying cause was deep-seated anger over the government’s failed policies, mismanagement, corruption, and the deep economic inequality that resulted.

Public trust in the government had been declining for years, driven by its controversial fiscal policies and the central bank’s failed “financial engineering” in 2016 – complex swaps and issuance of financial instruments to attract foreign currency and inject liquidity into the banking system.

Persistent budget deficits and inflated public sector salaries – boosted by a large salary hike in 2018 – further affected trust.

The resulting economic hardship triggered the October 2019 protests and exposed the country’s economic fragility.

In March 2020, Prime Minister Hassan Diab’s government defaulted on its sovereign debt, just as the COVID-19 pandemic struck, disrupting global supply chains and exacerbating Lebanon’s vulnerabilities.

The pandemic further strained an already weakened healthcare system, leading to critical shortages of hospital beds and essential medications.

Its reliance on tourism and remittances made Lebanon particularly susceptible to the global economic downturn.

The Beirut port explosion, 2020

In August 2020, one of the most powerful non-nuclear explosions in history devastated Beirut.

In addition to the widespread destruction and loss of life it caused in the capital, the explosion exposed deep-rooted corruption and negligence that further eroded public trust in the government.

It also severely discouraged foreign investment, further destabilising an already precarious situation.

The Lebanese pound went into freefall throughout 2020, fuelling rampant inflation and eroding people’s purchasing power.

Then, in 2022, Russia invaded Ukraine, upending global fuel and food supply chains that affected countries worldwide.

In Lebanon, it further intensified the already intense economic pressure on households, which were struggling to maintain basic living standards as the government increasingly struggled to provide the most essential services – and fell short.

Sali Hafiz: ‘ Wonder Woman ‘ demands her money

As the banking sector fell deeper into turmoil starting in 2019, and in the third quarter of that year, banks began to severely restrict people’s access to their deposits.

Then in September 2022, &nbsp, Sali Hafiz took a replica gun and held up a Beirut bank to access her own savings. She immediately became a symbol of the suffering that many Lebanese were going through, and they started calling her “Wonder Woman”.

These compounding crises created a perfect storm, leaving Lebanon teetering on the edge of collapse.

Many families were forced to sell cherished valuables, while reliance on overseas remittances intensified. Yet even this lifeline proved insufficient for many.

The desperation fuelled a surge of Lebanese, including skilled professionals, emigrating – the exodus of “boat people” attempting perilous sea journeys becoming a stark symbol of the nation’s despair.

In the third quarter of 2019, the government established a dual exchange rate regime – an official rate and a free market rate – and imposed price ceilings on certain commodities, including fuel and medication.

This led to shortages and the development of black markets for these commodities, beginning in 2020 and escalating to extensive queues and widespread public anger by 2021.

Thus, by the end of 2022, at the end of President Michel Aoun’s mandate and the resignation of Prime Minister Najib Mikati’s government, the debt default, pandemic, port explosion, currency devaluation, and global price hikes had resulted in unprecedented economic and social distress.

A glimmer of hope dashed

In 2023, the government stopped printing Lira banknotes, which helped the exchange rate stabilise. In parallel, price controls were lifted the previous year, ending shortages and black markets.

However, this hope was short-lived as Hezbollah began militarily engaging Israel on October 8 in the aftermath of the October 7, 2023, events in Gaza. After months of trading attacks over the border, Israel launched a full-scale assault on the country in September 2024, leaving it devastated by the end of the year.

The resulting destruction was huge, estimated by the World Bank at approximately $3.4bn, while economic losses, including lost productivity and trade disruptions, amounted to an additional $5.1bn.

Combined, they represent a staggering 40 percent of Lebanon’s gross domestic product (GDP).

The conflict further disrupted trade and deterred foreign investment, exacerbating existing challenges – destroyed infrastructure hampered transport and logistics, severely affecting businesses already barely surviving.

Unplugging Hezbollah

Hezbollah has had a huge role in Lebanese society for decades, providing financial and social support to its support base in Beirut’s southern suburb, the south, and northern Bekaa Valley.

But its role was significantly degraded by the war, effectively “unplugging” its contributions from the economic system, which is likely to negatively affect those who relied on its support.

While the full macroeconomic effect is not yet clear, this could lead to further social and economic instability, especially given that Israel focused its destructive attention on areas where Hezbollah’s support base – now deprived of Hezbollah’s support – lives.

Hopes for the future

Lebanon has a new government under President Joseph Aoun and&nbsp, Prime Minister Nawaf Salam, and hopes are running high for renewed political will to implement difficult reforms given that the new government enjoys re-found popular legitimacy.

Among the potential avenues the new government can explore would be banking reform, increasing trade and foreign investment, and increasing its attractiveness as a destination for businesses.

However, it faces immense challenges posed by the deep-rooted problems that have plagued Lebanon for at least a decade.

What remains to be seen is whether it will be able to implement economic reforms, maintain political stability, and navigate the complexities of the regional geopolitical ‎landscape.

Ultimately, the success of these efforts will directly affect the Lebanese people, particularly the most vulnerable, in a context where the poverty rate has increased tremendously since 2019.

Failure to deliver could exacerbate the daily struggle for a decent living, pushing more citizens towards desperate measures, including increased emigration and brain drain, further eroding the nation’s social fabric.

Officials from Ukraine and the United States are set to meet in Saudi Arabia this week to negotiate an end to the war with Russia.

This will mark the first high-level meeting between the two countries since February 28, when a White House meeting between Ukrainian President Volodymyr Zelenskyy and US President Donald Trump – who was joined by Vice President JD Vance – descended into a public bust-up, playing out in front of television cameras.

Here is what to expect in Saudi Arabia:

What meetings are planned between the US and Ukraine?

Zelenskyy is scheduled to meet with Saudi Crown Prince and Prime Minister Mohammed bin Salman on Monday, he wrote in an X post on Saturday.

In his post, he added that Ukrainian diplomatic and military leaders will stay in Saudi Arabia for a meeting on Tuesday with US representatives.

Ukraine’s team for the Tuesday meeting is expected to include Andriy Yermak, head of Zelenskyy’s office, Andrii Sybiha, the minister of foreign affairs, Rustem Umerov, the minister of defence, and Pavlo Palisa, a colonel in Zelenskyy’s office.

From the US side, Secretary of State Marco Rubio will attend the Tuesday meeting. He has already flown to Saudi Arabia, where he too will meet with the Crown Prince. Rubio is expected to be joined by Trump’s Middle East Special Envoy Steve Witkoff and National Security Adviser Mike Waltz for the Ukraine meeting on Tuesday.

Witkoff has already been involved in trying to broker deals with Russia and Ukraine. &nbsp, Last month, he represented the US during peace negotiations with Russian officials, and also visited Russia, securing the release of imprisoned&nbsp, American Marc Fogel, in exchange for the US releasing Russian Alexander Vinnik. Witkoff was the first high-level US official to travel to the country since its 2022 invasion of Ukraine.

Trump and Zelenskyy: What has happened so far

The talks in Saudi Arabia come less than two weeks after Trump and Vance accused Zelenskyy of being a warmonger looking to avoid a ceasefire with Russia, and of being ungrateful to the US and Trump for supplying military and other assistance to Ukraine.

Those accusations, and Zelenskyy’s attempts to question the merits of unconditional diplomacy with Russian President Vladimir Putin, came amid a broader Trump-led shift in the US approach to the Russia-Ukraine war.

Last month, representatives from Washington and Moscow had talks in Saudi capital Riyadh, with Ukraine and European countries absent. After this, Trump and Zelenskyy traded barbs, making jibes against each other in speeches and on social media.

And soon after Zelenskyy’s acrimonious meeting in the Oval Office, &nbsp, the US suspended military and intelligence support to Ukraine.

Where will the US-Ukraine talks take place?

The Ministry of Foreign Affairs in Saudi Arabia said in a statement on Friday that the meetings will take place in Jeddah, a port city on the Red Sea. Jeddah has previously been a venue for diplomatic engagements.

“The kingdom has continued these efforts over the past three years by hosting many meetings on this matter”, the Foreign Ministry statement said.

Timothy Ash, an associate fellow in the Russia and Eurasia programme at Chatham House, told Al Jazeera that Saudi Arabia’s strong diplomatic ties with both Moscow and Kyiv placed it in a good position to host such a summit.

What will be discussed in the Saudi talks?

On March 4, Zelenskyy wrote in a post on X that Ukraine was ready for peace negotiations. He also summarised terms for a peace plan in this post, writing: “The first stages could be the release of prisoners and truce in the sky – ban on missiles, long-ranged drones, bombs on energy and other civilian infrastructure – and truce in the sea immediately, if Russia will do the same”.

A temporary truce of the kind suggested by Zelenskyy “in terms of long-range missile and air attacks might be part of a confidence-building exercise”, and will “probably]be] the centre of” the discussions in Jeddah, Ash said.

Ash added there might be general discussions to help the two parties better understand each other’s position. For Ukraine, this could mean explaining the importance of the continuous flow of weapons and intelligence.

On Sunday, Trump was asked if he has thought of ending the suspension on intelligence sharing. “We just about have. We just about have”, he responded. He said he expects good results from the US-Ukraine talks on Tuesday.

From the US perspective, Witkoff told reporters on Thursday that Washington was pushing for a “framework for a peace agreement and an initial ceasefire as well”.

On Thursday, Trump told reporters: “I think what’s going to happen is Ukraine wants to make a deal because I don’t think they have a choice”. He added: “I also think that Russia wants to make a deal because in a certain different way – a different way that only I know, only I know – they have no choice either”.

A deal on critical minerals, which will allow the US to invest in Ukraine’s mineral resources, including&nbsp, rare earth minerals, might also be on the table on Tuesday. The two countries were expected to sign the&nbsp, deal during Zelenskyy’s visit to the White House, but the agreement was not inked.

Zelenskyy has since said “Ukraine is ready to sign it]the minerals agreement] in any time and in any convenient format. We see this agreement as a step toward greater security and solid security guarantees, and I truly hope it will work effectively”.

Trump, meanwhile, has sounded more circumspect about the prospects of a quick minerals deal in recent days.

Montreal, Canada – Canada’s governing Liberal Party has chosen Mark Carney to replace outgoing Prime Minister Justin Trudeau as its leader.

The former governor of the Bank of Canada won the Liberal leadership vote on Sunday, about two months after Trudeau announced plans to resign amid pressure over an affordability crisis and threats of a trade war with the United States.

Carney is taking the reins of the party as Canada-US tensions are soaring following President Donald Trump’s imposition of steep tariffs on Canadian goods.

Canada is also heading into a federal election that must take place by October 20 but could happen sooner.

So what happens now? Here, Al Jazeera breaks down what’s next as Carney takes over from Trudeau as party leader and is set to become Canada’s new prime minister.

Carney wins leadership

Carney overwhelmingly won a leadership race that saw him go up against former Canadian Finance Minister Chrystia Freeland, MP Karina Gould and businessman Frank Baylis.

The economist and former central banker is not a sitting member of the Canadian parliament — known as the House of Commons — and he has never held federal office before.

Under Canada’s Westminster system of parliamentary government, a person does not need to be elected to serve as prime minister, explained Andrea Lawlor, an associate professor of political science and public policy at McMaster University in Ontario.

Instead, the prime minister must be someone who “can command the confidence of the House”, Lawlor told Al Jazeera.

In practice, this has typically meant the prime minister is the leader of the party with the most seats in Parliament or who can form a government. The Liberals currently have a minority government.

But while Sunday’s vote made Carney leader of the Liberal Party, he has not yet formally stepped into his role as prime minister.

Trudeau must formally resign

Trudeau, who has been prime minister since 2015, announced in January that he would step down as Liberal leader and prime minister after his successor was chosen.

Now that Carney has been selected as the new leader, Trudeau must formally resign.

That involves going to the governor general, the official who holds the largely symbolic role of upholding the Canadian governmental system.

“For the transition of power to take place, the prime minister must inform the governor general of their intention to resign and advise them about who they think their successor should be”, explained Daniel Beland, a professor at McGill University in Montreal.

“It’s only after the governor general accepts the resignation of the prime minister that they can appoint a successor, typically by acting upon the advice of that outgoing prime minister”.

It is unclear exactly when Trudeau plans to go to the governor general.

Speaking to reporters on Thursday of last week, the outgoing prime minister said, “I look forward to a transition to my duly elected successor in the coming days or week”.

Carney invited to form gov’t

Once the governor general accepts Trudeau’s resignation and his recommendation, Carney will then be asked to form a government.

CBC News reported last week that preparations for the prime ministerial transition process — from Trudeau to his successor as Liberal leader — were already quietly under way.

One of the top questions will be the size and makeup of Carney’s cabinet.

Several members of Trudeau’s government, including Foreign Minister Melanie Joly and Finance Minister Dominic LeBlanc, had endorsed Carney’s bid for the Liberal leadership and are expected to be part of his future cabinet.

Whenever Carney is officially sworn in as prime minister, he would speak on behalf of the Liberal minority government.

Joining the House of Commons

After taking up the top post, Carney would then be looking to quickly get his own seat in Parliament, Lawlor said — both to boost his own political legitimacy and more easily carry out his work.

“Much of what we expect as Canadians is for our prime minister to be a legitimated member of the House through election and to face the opposition across the aisle”, she told Al Jazeera.

Carney can seek to join Parliament either through a so-called by-election — a special election to fill a single seat — or a general election.

“I think it will depend on what’s the internal calculus to the party, to either have him run in a by-election or call a general]election]”, Lawlor said. “I think a lot that would be dictated by how well he’s doing in the polls”.

The federal election must be held by October 20, but as the party in government, the Liberals can effectively call a vote at any time.

Experts say an early election call appears likely, as the party is riding a wave of increased support due to Trump’s tariffs and Trudeau’s decision to step down.

Opposition parties can also trigger an election by passing a no-confidence vote in the House of Commons. Trudeau suspended Parliament in January when he announced his resignation, and lawmakers are set to return on March 24.

Canada’s Conservative Party and the Bloc Quebecois have said they plan to try to bring down the Liberal government at the soonest opportunity, saying early elections are needed to mount a strong response to US tariffs.

Caretaker government

If an election is launched, Carney and the Liberals will effectively act as a caretaker government.

If the race begins before Carney has a chance to win a parliamentary seat, that opens up new questions and avenues for criticism.

As it stands, because Carney is unelected, he is not yet subjected to rules that govern Canadian lawmakers. That includes requirements to disclose financial holdings and potential conflicts of interest.

Opposition MPs had called on Carney to voluntarily comply with those rules, even before he formally won the leadership.

Conservative legislator Michelle Rempel Garner also raised questions last week when it was reported that Joly, Canada’s foreign minister, had briefed Carney on US tariffs.

“I’m a sitting Parliamentarian. The Liberal government shut down Parliament, but some random nobody gets a briefing and elected MPs don’t”? Rempel Garner said in a post on X.

Lawlor also noted that Carney will “need to obtain certain security clearances in order to access information about border integrity or Canadian defence” when he becomes prime minister.