EBRD prospects: Lebanon economy to shrink in ’24

Lebanon’s economy is forecast to shrink by 1.0 per cent in 2024 amid ongoing political instability and stalled economic reforms, according to the latest projection by the European Bank for Reconstruction and Development (EBRD). However, the EBRD notes that growth could return to 2.0 per cent in 2025 if the attacks are contained and reforms under an IMF programme progress well.

Inflation in Lebanon dropped significantly to 35.4 per cent in July 2024, a sharp decline from 352 per cent in March 2023, following efforts by the central bank to unify exchange rates (FX) and the adoption of the 2024 budget law.

Attribution: EBRD report

Subediting: M. S. Salama