IMF: Lebanon sustains macro stability

The International Monetary Fund mission concluded that Lebanese authorities succeeded in maintaining a certain level of macroeconomic stability during September 2026, despite worsening conditions due to the conflict with Israel and regional security developments. The war and crises led to a significant economic contraction and double-digit inflation, along with an increase in the current account deficit resulting from rising energy costs and infrastructure destruction. While the government made progress in fiscal management and passing laws to address banking sector issues, challenges still remain—especially in implementing necessary structural reforms, including aligning financial stability laws with international standards, making tax adjustments, and avoiding arbitrary increases in wages or pensions without measures to boost revenues. Continued IMF support and the cooperation of Lebanese authorities are essential to achieve sustainable economic reforms and ensure the stability of the financial sector.

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