World Bank projects war-hit Lebanon’s economy to contract by 6.4 percent

Conflict with Israel derails Lebanon’s economic recovery as inflation and consumer prices rise, the global lender says.Published On 22 Aug 202622 Aug 2026Lebanon’s economy is projected to shrink by 6.4 percent this year as conflict turns a brief post-crisis recovery into a sharp downturn, says the World Bank.The global lender’s Summer 2026 Lebanon Economic Monitor, titled A Conflict-Torn Economy, noted that the country entered the year on stronger footing after expanding by 4.2 percent in 2025, its highest real gross domestic product (GDP) growth since the 2019 financial collapse.Recommended Stories list of 3 itemslist 1 of 3Canada boosts Lebanon aid to $50m and condemns Israeli ‘unlawful invasion’list 2 of 3What’s happening in Lebanon’s ‘pilot zones’?list 3 of 3Displaced Lebanese watch southern Lebanon’s ‘pilot zones’ from afarend of list“The rebound 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 report said on Friday.“Real GDP is projected to contract by 6.4 percent in 2026, reflecting the collapse in tourism,...