Lebanon economy could shrink by up to 10% amid war

“Lebanon economy could shrink by up to 10% amid war Lebanon’s ongoing war is expected to shrink the country’s economy by at least seven percent this year and could cost the country an estimated $20bn. Finance Minister Yassine Jaber told Reuters he expects the war to trigger an economic contraction of between seven and 10 percent in 2026. According to the World Bank, the 2024 war caused at least $8.5bn in physical damage and economic losses, while Lebanon’s real GDP contracted by 7.1 percent in 2024, bringing the country’s cumulative economic decline since 2019 to nearly 40 percent. In January, the World Bank projected Lebanon’s economy could grow by four percent in 2026 if stability returned, reconstruction aid arrived and financial reforms continued. Jaber said the government had initially hoped to achieve a budget surplus this year, but instead allocated $50m in public funds to support more than one million people displaced by the war.

Summary generated from the RSS feed of Middle East Eye. All article rights belong to the original publisher. Click through to read the full piece on www.middleeasteye.net.