IMF forecasts major Lebanon recession in 2026

The International Monetary Fund forecasts that the Lebanese economy will experience a significant contraction in 2026, due to ongoing conflict in the Middle East and widespread security tensions, which adversely affect economic activity and infrastructure. The Fund pointed out that inflation remains in double digits, with an increase in the current account deficit caused by rising energy costs and declining living standards, along with damages to infrastructure and internal displacement. The report highlights that the economic situation is deteriorating significantly under these conditions, with ongoing challenges hindering the country's efforts to restore stability and growth.

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