This is a critical summary of the World Bank report (Lebanon Economic Monitor: The Deliberate Depression, Fall 2020). It assesses how Lebanon’s economy can recover by applying reforms while taking into consideration the Lebanese economic scene in 2020 and 2021.
Policy Context: Lebanon is facing an unprecedented economic and financial crisis. The instability of domestic politics has worsened the situation. In details, the formal government of “Hassan Diab” tried to regain macro-financial stability in Lebanon by establishing an economical plan that tackled important economic aspects, like exchange rate adjustment, comprehensive debt restructuring, and growth enhancing reforms. However, the plan has raised conflicts between the government and BDL concerning the calculation of debt losses in the financial sector, and banking sector restructuring. As a result, the negotiations between Lebanese authorities and the IMF have been stalled.
Kindly follow the link for the full report:
World Bank’s Report on Lebanon “The Deliberate Depression” – A Review