IMF: Lebanon's Economy Likely Shrinks

The International Monetary Fund (IMF) expects Lebanon's gross domestic product (GDP) to contract in 2026 due to the worsening of economic, social, and humanitarian conditions amid the resumption of conflict. The IMF emphasized ongoing coordination with Lebanese authorities to manage the crisis and implement comprehensive economic reforms to support the economy in the future. Additionally, the fund noted a decline in energy prices following the agreement between the United States and Iran to halt hostilities in the Strait of Hormuz. However, it warned that a return to previous price levels and trade flows will take time, as challenges stemming from the war and its impact on global growth persist.

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