Lebanon’s economic crisis remains severe despite some progress in monetary and fiscal reforms, according to the International Monetary Fund (IMF). The ongoing refugee crisis, conflicts with Israel, and spillover from the war in Gaza are further worsening the situation.
IMF mission head Ernesto Ramirez Rigo emphasized that Lebanon’s high levels of unemployment and poverty, disrupted public services, and hosting of a large refugee population are contributing to the economic challenges. The recent fighting at the southern border and conflict in Gaza are adding to the uncertainty.
Although some measures have been taken to stabilize the economy, such as monetary and fiscal reforms, more comprehensive actions are needed for a sustainable recovery. The frozen bank deposits and inability of the banking sector to provide credit are also hindering progress.
Ramirez Rigo highlighted the importance of approving the 2024 budget and making stronger efforts in public finances. He called for enhanced governance, transparency, and accountability, as well as further fiscal reforms to address the economic crisis.
The IMF remains committed to supporting Lebanon, with plans for further discussions in September 2024 to assess the progress on critical economic and financial reforms.