Restoring Lebanon’s economic growth will require comprehensive reforms, IMF says

Lebanon’s economy has shown resilience despite conflicts in the region, with tourism fueling a bit of a rebound, but restoring growth will require comprehensive ⁠reforms, the IMF said on Thursday. (AFP/File)

• Kozack said the global lender remains engaged in complex discussions with Lebanese authorities
• “The economy has shown resilience despite the impact of conflicts in the region”

WASHINGTON: Lebanon’s economy has shown resilience despite conflicts in the region, with tourism fueling a bit of a rebound, but restoring growth will require comprehensive reforms, the International Monetary Fund said on Thursday.
IMF spokeswoman Julie Kozack said the global lender remains engaged in complex discussions with Lebanese authorities following their request for an IMF-supported program ⁠in March 2025.
The ⁠IMF sent a staff mission to Beirut earlier this month.
The talks have been focused on two big issues, she said, citing the need for banking sector restructuring and a medium-term fiscal ⁠strategy.
“The economy has shown resilience despite the impact of conflicts in the region. It has had a bit of a rebound on the back of tourism from the strong diaspora,” Kozack said.
“But at the same time, really restoring strong and sustainable growth will require a comprehensive set of reforms to tackle some of the ⁠structural ⁠weaknesses that have really hampered Lebanon’s economic performance for many years,” she said.
Reforms also are needed to attract international support to help Lebanon address its substantial reconstruction needs.
Kozack said Lebanon needs an updated medium-term fiscal framework that includes concrete measures to mobilize additional revenues for much-needed capital spending, as well as a sovereign debt restructuring to restore debt sustainability.