World Bank paints dimmer economic picture for Lebanon’s economy

The World Bank on Tuesday said that Lebanon’s economic crisis is likely to be deeper and longer than most other economic crises.

“A year into Lebanon’s severe economic crisis, deliberate lack of effective policy action by authorities has subjected the economy to an arduous and prolonged depression,’’ a report from the World Bank Lebanon Economic Monitor (LEM) said.

Real GDP growth is projected to sharply decelerate to 19.2 per cent in 2020 on the back of a 6.7 per cent contraction in 2019.

The collapse of Lebanon’s currency has led to triple-digit inflation rates, the report said.

Lebanon, which is undergoing its worst economic crisis since the civil war ended, has lost 80 per cent of its currency value this year.

The report said that poverty in the country is due to worsen, engulfing more than half of the population.

The Lebanese cabinet resigned after a deadly explosion near Beirut’s port on Aug. 4, attempts to form a new government have failed.

“Lack of political consensus on national priorities severely impedes Lebanon’s ability to implement long term and visionary development policies,’’ said Saroj Kumar Jha, World Bank Mashreq Regional Director.