Crisis-ridden Lebanon has suffered physical damages and economic losses estimated at $8.5 billion during more than a year of Hezbollah-Israel clashes turned into a war, with housing the hardest hit, the World Bank says.

The World Bank said on Thursday the ongoing conflict between Israel and Hezbollah has caused $8.5 billion in damage and losses to Lebanon, with final figures expected to be significantly higher as the conflict continues.

More than a year of clashes that recently escalated into war have cost Lebanon more than $5 billion in economic losses, with actual structural damage amounting to billions more, the World Bank said on Thursday.