The United Nations Economic and Social Commission for Western Asia (ESCWA) indicated that the Lebanese economy is in recession, which has resulted in higher unemployment and poverty rates. It indicated that the explosion at the Port of Beirut on August 4, 2020 has led to a significantly slower pace of private sector activity, which, in turn, weighed on overall economic activity. It anticipated a further contraction in private sector activity in 2021, in case of delays in the rollout of the COVID-19 vaccine and if authorities do not implement political and economic reforms.
 
First, the survey indicated that private sector activity in Lebanon reached a significantly low level, as the pandemic led to a 45% drop in private sector sales in 2020 relative to 2019. It noted that sales in the wholesale & retail sector fell by 48% during the covered period, followed by sales in the transportation sector (-47%), the construction sector (-45%), manufacturing (-44.7%),  and at hotels & restaurants   (-41%). Second, it said that full-time employment in key sectors declined by an average of 23% in 2020 from the previous year. It pointed out that the construction sector lost 40% of its full-time employees, followed by the hotel & restaurants sector (-31%), and the manufacturing sector (-27%). It added that firms that were affected by the August 4 blast suffered higher job losses than companies that were not directly impacted by the explosion.

Third, it noted that the COVID-19 pandemic resulted in lower demand for full-time employees in micro and small enterprises, as it estimated that micro enterprises and small firms laid off 50% and 20% of their full-time employees, respectively, in 2020. Fourth, it said that non-exporting companies registered lower sales and laid-off twice as many full-time workers as exporting firms. It noted that non-exporting firms lost more than 30% of their full-time jobs last year, while exporting firms laid off only 14% of their full-time employees in 2020 due to better-than-expected external demand. Finally, it indicated that tax revenues from all forms of private sector contributions declined by 17% in the first nine months of 2020, and expected this decrease to be significantly higher for full year 2020 due in part to the most recent tax deferrals granted by the government.