Interview with Juliana Maannak: Inside Lebanon's Financial Storm - Tracking the Cost of Living Crisis

Can you introduce yourself and how long have you been gathering data in Lebanon?

I'm Juliana, 21 years old. I've been with WageIndicator for a year and two months now. I started as an intern, and that’s when I began collecting data. So, I've been involved in this for about a year and a half. What makes this experience unique is that it all started right as Lebanon's economic crisis was unfolding.

Can you describe your experience with data collection a bit more? 

The experience of data collection varies for each category. For food, it’s pretty straightforward—I visit supermarkets, local shops, and check prices online. However, collecting data on energy costs can be more challenging. In Lebanon, people pay two electricity bills: one to the government for the few hours of electricity it provides, and another to private generator owners. This adds to the complexity, and you also have to be vigilant about inflated figures reported by some individuals.

Have you noticed any changes in consumer habits? 

Yes, definitely. Some people have stopped buying expensive imported brands and are choosing local or cheaper alternatives instead. Meat has become too expensive for many, so it’s now something people eat much less frequently. There’s also a reliance on expats to bring in imported necessities and medications, which has become a way for us to adapt to the situation.

When was the minimum wage last updated in Lebanon?

The minimum wage for the public sector was recently updated to about 18,000,000 LBP per month, which is around $200 at the current exchange rate. But this doesn’t really match up with the rapid increase in prices. Private sector wages vary a lot, with some companies paying well and others not so much. Even teachers in private schools for instance are struggling with low pay, and many have gone on strike this year demanding raises.

Are you scared given the current circumstances?

We’re used to living with conflict and political tensions, but right now, things are particularly scary. The country is always surrounded by conflict regions. However, this is not new.

Could you briefly explain the current situation in Lebanon and what has led to the crisis?

The crisis kicked off at the end of 2019 and really blew up in early 2020. Lebanon has struggled with corruption and mismanagement for years, and by late 2019, our currency started losing value fast against the US dollar, causing prices to skyrocket. People couldn’t access their savings because the banks were unable to return their money. The Lebanese pound fell drastically, from 1,500 pounds per dollar in 2019 to around 89,000 pounds per dollar in just a year and a half. This caused a huge increase in the cost of living and shortages of basic necessities. We’ve had to adjust to a new and very challenging reality.

Is the cost of living crisis affecting different regions in different ways?

Definitely. There’s a big difference in prices depending on the region. In some areas affected by conflict, prices are kept lower, but in the more peaceful, touristic parts of the country, the cost of living has gone through the roof. 

Are tourists still coming to Lebanon?

Yes, the expats are still coming. They’re the ones spending money and keeping the economy afloat. We’re heavily relying on remittances—almost every family here has someone abroad sending money back home. This is how we’ve been managing to get by.

Have you thought about leaving the country?

I won’t leave my family. I want us to stay together. Right now, I’m not sure what the future holds. The tension could be more intense this time, with attacks becoming more widespread, but we’re trying to manage as best we can on an individual scale and a collective one.

What are you looking forward to the most despite all the challenges?

I’m really excited about pursuing my Master’s in Political Science and International Diplomacy next year. That’s what I’m most looking forward to.

September 2024