WB: Lebanon’s Fragile Economic Recovery amid Ongoing Structural Challenges
Lebanon’s economy recorded positive growth in 2025, marking a modest but notable shift after years of deep economic contraction. According to the article published by the World Bank in winter 2025, Lebanon Economic Monitor, this improvement reflects a fragile rebound driven mainly by tourism, sustained remittance inflows, and early signs of macroeconomic stabilization following prolonged crisis conditions. Political developments – including the election of a president, the formation of a government, and progress on delayed reforms such as amendments to the Banking Secrecy Law – have contributed to a degree of institutional and political stabilization. However, this stability remains weak, as ongoing regional conflict, intermittent security incidents, and persistent political polarization continue to weigh heavily on investment, tourism, and overall economic activity.
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