IMF urges swift reforms for Lebanon

Lebanon needs economic reforms to address the deepening crisis, as highlighted by the International Monetary Fund (IMF) team’s assessment. The assessment underscores the critical need for comprehensive measures to alleviate the strain on Lebanon’s economy.

According to the IMF, which concluded its mission to Lebanon on Thursday, amidst ongoing conflicts and the burden of hosting a large refugee population, Lebanon’s economic challenges have reached a critical juncture.

The recent escalation of tensions at Lebanon’s southern border and spillovers from the conflict in Gaza have further exacerbated the situation.

While some progress has been made in stabilising inflation and the exchange rate, significant challenges persist, particularly in the banking sector. The absence of a viable strategy to address banking sector issues hampers economic growth and fosters an informal economy.

The IMF stresses the importance of swift and decisive action to implement reforms that will restore confidence, attract investment, and pave the way for economic recovery. These reforms should include strengthening public finances, enhancing governance and transparency, and addressing the banking sector’s woes.

Looking ahead, the IMF remains committed to supporting Lebanon in its efforts to navigate these challenging times. The upcoming Article IV discussions, scheduled for September 2024, will provide an opportunity to assess progress on critical economic and financial reforms.

The IMF extends its gratitude to the Lebanese authorities and all stakeholders for their cooperation during the visit.