World Bank forecasts 6.4 percent economic contraction for Lebanon

Lebanon’s economy is expected to contract by 6.4 percent in 2026 due to escalating conflict, which has disrupted tourism, supply chains, and domestic demand, according to the World Bank. Inflation is projected to rise to 17.5 percent, driven by supply chain issues and volatile fuel prices. The International Monetary Fund has endorsed recent legislative amendments aimed at restructuring the banking sector and will resume discussions with Lebanese officials on a potential bailout program.

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