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Lebanon confronts 9% decline and 5B rebuild cost
The article discusses the economic and financial situation in Lebanon amidst its accelerating deterioration. According to Standard & Poor's forecasts, Lebanon's economy is expected to shrink by approximately 8 to 9 percent in 2026, a stark contrast to earlier projections of 3 percent growth. This decline is likely to lead to a decrease in tourism activity and an increase in reconstruction costs, estimated at around 5 billion dollars, which amounts to about 13 percent of the Gross Domestic Product. Such developments negatively impact the construction and tourism sectors and undermine investor confidence. Despite governmental efforts toward financial reforms and the achievement of some small budget surpluses, the crisis persists, with public debt rising to about 152 percent of GDP and a decline in Eurobond prices, threatening Lebanon’s credit ratings. In the absence of significant progress in debt restructuring and reform measures, Lebanon’s economic situation remains perilous, with ongoing losses accumulating and living conditions continuing to deteriorate.
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