The Post-Blast Economic Recovery

What does this platform do?

The blast zone includes three streets which have a key function in the Beirut’s economy and cultural life. Armenia, Pasteur and Gouraud streets are important retail areas for local and non-local residents, as well as visitors. Historically, these streets were associated with Armenian tradespeople, who established mechanics, hardware and appliance stores as well as local craft stores. Since the turn of the century, light industries have increasingly become mixed with more middle- and upper-class cultural and leisure spaces: bars and restaurants which attract young Beirutis and foreign nationals, as well as private galleries. This economic shift has happened alongside changes in the typical wealth of residents, as higher-earning residents have moved in to rental properties and purchased properties of their own.

In this story, we explore what happened to these businesses since the blast. We ask which businesses opened and when, to learn how this key economic area is recovering from the blast.

Has the local economy recovered?

30 months after the blast, one third (34%) of businesses remain closed on Armenia Street. 

19% of all businesses have not returned to pre-blast trading levels. 26% of Electronics Stores, 21% of Restaurants, 13% of Artisans, 13% of Grocers, 10% of Clothing Stores and 5% of Mechanics have closed their doors. Only Pharmacies, Mobile Phone Shops, Currency Exchanges, and Bookstores have recovered their pre-blast levels.

The effect of the blast 

Of the businesses that remain closed today, 55% closed because of the blast. Eight months after the blast, the number of Restaurants had declined by 38%, Grocers had declined by 21%, Appliance & Hardware Stores had declined by 36%, and Banks had declined by 56%; the highest rate of decline in our survey.

How quickly did different business categories recover?

When we began collecting data on businesses in April 2021, only 41% of businesses were open. However, Food and Beverage businesses were already reopening at the beginning of the survey, growing by 18 storefronts between April and August 2021. This is 14 more storefronts than the next fastest-recovering category of business (Appliances & Hardware).

While Miscellaneous Shops and Services were still closing between April and August 2021, this category of businesses experienced even more rapid growth between December 2021 and October 2022 than the food and beverage sector experienced over the same period, indicating a slower retail recovery. This category includes (in order of frequency) corporate offices, design/photography studios, liquor/tobacco stores, and various consumer goods such as books, sports equipment, or gifts. Other categories, including creative/cultural industries have grown linearly or leveled off.

While restaurants have opened more quickly than other categories, only staple businesses like Pharmacies and Currency Exchanges have fully recovered from the blast. As of February 2023 one fifth (19%) of pre-blast businesses are still missing from Armenia, Pasteur and Gouraud Streets. 

We have observed an incomplete process of recovery in post-blast Armenia Street. Whilst some businesses have struggled to reopen since the blast, restaurants and bars have done relatively well as visitors with money to spend on leisure continue to flock to Armenia. That restaurants and bars are doing better in a post-blast environment is linked to ongoing trends in local economic changes in the area. Despite these changes, well-established businesses which had been the stalwarts of Armenia Street – hardware stores and hardware stores – are recovering too. Despite the blast, Armenia Street continues to function as a central economic area for lesiure and retail, albeit with a slightly uncertain future.

Users can explore the dataset using our custom dashboard  here . The rest of our blast-related outputs may be found at the  Beirut Urban Observatory .