World Bank Downgrades Conflict Impact Outlook

The World Bank predicts a 6.4% contraction in Lebanon's real GDP in 2026, following a 4.2% growth in 2025, as a decisive halt to the recovery is anticipated due to the escalation that began in March 2026, which targeted tourism revenues and private consumption. The report指出ates that ongoing displacement, capital destruction, and disruptions in education and healthcare could have long-term effects on productivity and future growth prospects. Inflation is also expected to rise to 17.5% in 2026, with the possibility of a decline in the exchange rate if shocks continue or if external financial inflows diminish.

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