Lebanon’s GDP to grow by 0.2% in ’24 – report

Lebanon’s economy is projected to experience minimal growth in 2024, at a sluggish 0.2 per cent, the European Bank for Reconstruction and Development (EBRD) said in its latest Regional Economic Prospects report on Wednesday.

This stagnation is attributed to lingering geopolitical tensions, political inaction, and a delay in implementing crucial reforms.

However, there’s a glimmer of hope for 2025. A potential acceleration to three per cent growth could occur if regional tensions subside, an International Monetary Fund (IMF) programme is implemented, and reforms gain traction.

Despite remaining at historically low levels, foreign exchange reserves saw a slight increase in 2023. This rise is credited to a growth in remittances and tourist arrivals.

Additionally, the Lebanese central bank took steps to unify the country’s multiple exchange rates. This included phasing out the Sayrafa platform and aligning the official exchange rate in the 2024 budget law with the black-market rate.

These measures, coupled with falling global energy and food prices, have contributed to a significant slowdown in inflation.

From a staggering peak of 352 per cent in March 2023, inflation dropped to 123 per cent in February 2024, offering some relief to Lebanese citizens.