IMF expects decline in activity in Lebanon in 2026 — Asharq Al-Awsat
The International Monetary Fund expects a significant contraction in economic activity in Lebanon in 2026 due to the conflict in the Middle East and broader regional security tensions. This was reported by Asharq Al-Awsat, citing Reuters.
Impact of the conflict
According to the IMF, the conflict and regional tensions continue to negatively affect economic activity, infrastructure, and living conditions in the country. Damage to infrastructure, internal displacement, and deteriorating living standards are creating additional economic pressure.
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Inflation and current account
The Fund also noted that inflation in Lebanon remains at a double-digit level. The country's current account deficit has increased, mainly due to higher energy costs.
The IMF links the projected contraction in economic activity primarily to the prolonged impact of the conflict and broader instability in the region. The Fund indicated that these factors are worsening the economic situation and living conditions of Lebanon's population.
