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الراي
World Bank predicts 2026 Lebanon shrinkage
The World Bank forecasts a 6.4% contraction of the Lebanese economy in 2026, due to the renewed conflict with Israel since last March, which has led to a deterioration of economic conditions, increased damage to infrastructure, and widespread internal displacement. Although Lebanon achieved a 4.2% growth in 2025 and a fiscal surplus of 3.9%, the rising humanitarian needs and reconstruction costs are putting pressure on public finances. Inflation is expected to rise to 17.5% as a result of supply disruptions and the unsustainability of public debt, while the banking sector crisis continues despite some progress in restructuring efforts.
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