The IMF has reported that Lebanon’s economy is severely depressed due to recent conflicts and ongoing financial turmoil, with exceptionally high poverty and unemployment rates. Although some stabilization measures have been implemented, more comprehensive strategies are required to address economic challenges effectively.
The International Monetary Fund (IMF) reported that Lebanon’s economy is in a severely depressed state, worsened by a two-month conflict last year between Hezbollah and Israel that devastated infrastructure and housing. An IMF team met with the government led by President Joseph Aoun and Prime Minister Nawaf Salam to assess the situation and provide insights into the ongoing economic challenges. The IMF emphasized that poverty and unemployment rates have risen dramatically since the crisis began in 2019.
The report highlighted the continuous collapse of Lebanon’s banking sector, which obstructs economic activity and limits access to funds for depositors. Despite recent measures that have stabilized inflation and the exchange rate, these efforts remain insufficient in tackling the broader economic, financial, and social issues Lebanon faces. The IMF reiterated the necessity for a comprehensive strategy to foster economic rehabilitation, aiming to restore growth and enhance living conditions.
Following a period of conflict, the IMF noted that their collaboration with the international community aims to support Lebanese authorities in overcoming these pressing challenges. The report underlined that Lebanon’s financial crisis is currently the worst in its recent history, with public debt soaring to nearly 150 percent of its GDP, poverty rates increasing, and inflation exceeding 300 percent.
In summary, Lebanon’s economic crisis remains critical as indicated by the IMF’s assessment, with high levels of poverty and unemployment compounded by the collapse of the banking sector. While recent policy actions have provided some stability, comprehensive strategies for economic rehabilitation are essential for restoring growth and improving social conditions. The IMF stands ready to assist Lebanon in overcoming these significant challenges.
Original Source: www.agbi.com
