IMF predicts Lebanon's economy to shrink in 2026

The International Monetary Fund expects Lebanon's Gross Domestic Product to decline in 2026 due to the difficult economic, social, and humanitarian conditions resulting from the resumption of the war. Lebanon is continuing its negotiations with the Fund to secure emergency financing ranging from $800 million to $1 billion. The IMF also noted a slowdown in inflation to 19.0% in May, despite ongoing price increases, and stated that damages caused by the recent war in southern Lebanon are estimated at approximately $1.38 billion.

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