IMF Comments on Lebanon’s Economy

The International Monetary Fund's mission concluded that Lebanon's economic situation is deteriorating significantly due to regional conflicts and internal crises, with expectations of a contraction in economic activity in 2026, along with rising inflation and a current account deficit. The Fund praised progress in budget management and the approval of banking regulation laws, while emphasizing the importance of respecting creditor priorities and ensuring the sustainability of the banking sector. It also highlighted the need to improve financial legislation and restructure debt in accordance with international standards. The discussions also focused on the necessity of approving an increase in Value Added Tax and ensuring the sustainability of public finances, with the development of a medium-term financial framework aimed at achieving fiscal stability and implementing comprehensive reforms to support the recovery of the Lebanese economy.

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