World Bank projects 6.4% contraction for Lebanon’s economy

World Bank projects Lebanon’s economy to contract by 6.4% due to war

The World Bank says the figure represents a collapse in tourism, weaker consumption, disrupted supply chains, and prolonged displacement.

World Bank projects 6.4% contraction for Lebanon’s economy

The World Bank said the Israel-Hezbollah conflict has severely disrupted Lebanon's fragile recovery, predicting a 6.4% contraction in the economy.

Lebanon Economy Set to Shrink 6.4% in 2026 as War Derails Fragile Recovery

Lebanon’s fragile economic recovery is facing a renewed setback, with the World Bank forecasting a 6.4% contraction in real GDP in 2026 as the latest war weighs on tourism, consumer spending, supply chains and business activity.

Renewed Conflict Derails Lebanon’s Fragile Economic Recovery

Lebanon’s economy is projected to contract by 6.4% in 2026 as renewed conflict reversed the fragile stabilization and recovery momentum recorded in 2025, according to the latest World Bank Lebanon Economic Monitor (LEM). While Lebanon continues to face urgent humanitarian and reconstruction needs, progress on reforms remains essential to restore confidence, revive growth, and support a durable recovery.