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World Bank projects Lebanon's GDP to contract by 6.4 per cent in 2026

thenationalnews.com · 4h · first reportShare

Lebanon's economy is projected to contract by 6.4 per cent in 2026 due to the Israel -Hezbollah war, the World Bank said on Friday. Earlier this month, Lebanon's Economy Minister Amr Bisat told The National that the country's economy was expected to contract by 7 per cent this year due to the resumption of the conflict in March. The projections deal a blow to a brief window of optimism after Lebanon showed estimated real GDP growth of 4.2 per cent in 2025. “The rebound, supported by stronger consumption, investment, tourism and improved high-frequency indicators, was sharply interrupted by the March 2026 escalation in conflict, which further damaged housing and infrastructure, displaced communities, disrupted supply chains and weighed heavily on tourism and domestic demand,” the World Bank said in the summer edition of its Lebanon Economic Monitor. Lebanon is heavily reliant on imports and thus more exposed to shocks such as the disruption to shipping and energy supplies caused by the