The IMF reports that Lebanon’s economy is severely depressed, worsened by recent conflict and ongoing banking sector collapse. Poverty and unemployment levels are alarmingly high since the 2019 crisis. Recent measures have offered some stabilization, yet a comprehensive recovery strategy is essential for improvement. The IMF stands ready to support the Lebanese authorities in addressing these challenges.
The International Monetary Fund (IMF) has stated that Lebanon’s economy remains in a state of severe depression, worsened by a two-month conflict last year between the Iranian-backed Hezbollah group and Israel. This conflict resulted in significant damage to infrastructure and homes. During a recent visit to Lebanon, the IMF engaged with the newly established government headed by President Joseph Aoun and Prime Minister Nawaf Salam.
In its report, the IMF highlighted the exceptionally high levels of poverty and unemployment that have persisted since the economic crisis began in 2019. The ongoing collapse of the banking sector has severely hindered economic activity and access to banking services for depositors. While recent policy measures have contributed to some economic stabilization, such as reduced inflation and a stabilized exchange rate following the mitigation of the fiscal deficit, these actions have proven inadequate for addressing the persistent economic, financial, and social challenges.
The IMF has emphasized the urgent need for a comprehensive strategy aimed at economic recovery to restore growth, lower unemployment, and enhance social conditions. The organization remains committed to supporting Lebanon’s authorities in confronting these formidable challenges. Reports also indicate that Lebanon is facing unprecedented levels of financial crisis, with debt soaring to nearly 150 percent of its GDP and inflation surpassing 300 percent, marking one of the most severe financial crises in the nation’s modern history.
In conclusion, Lebanon’s economic situation is dire, characterized by a devastated banking sector and soaring poverty rates. Despite recent policy efforts yielding slight improvements, the IMF stresses the necessity of a well-rounded strategy for economic rehabilitation. The international community’s support, in collaboration with Lebanon’s government, is essential to navigate these profound social and economic difficulties effectively.
Original Source: www.agbi.com
