Lebanon has faced a multitude of crises since 2019, ranging from financial collapse and political instability to a devastating war that continues to inflict damage. Consequently, the economy contracted by a cumulative 38% from 2018 to 2024, with the Investment to GDP ratio plummeting from around 21% in 2018 to below -9% in 2024, according to the Institute of International Finance’s (IIF) calculations. Recently, some corrective measures have been taken. The exchange rate has stabilized, a ceasefire with Israel has been implemented, and the election of a new president, a new prime minister, and a new cabinet, believed to be pro-reform, has given some hope. However, poor governance, political and sectarian divisions, widespread corruption, and mismanagement of public policy continue to hamper potential reforms. Despite these challenges, the IIF’s Research Note on Lebanon, titled ‘New Era: The Urgency for Deep Reforms’ (February 16, 2025), asserts that there remains hope for Lebanon’s future. The report anticipated two equally probable outcomes: a limited reform scenario and a deep reform scenario.
For the full report, click on the below link:
IIF – Lebanon at a Crossroads – Navigating Limited and Deep Reform Paths