Priority policies for an economic recovery in Lebanon
The current government in Lebanon is keen to encourage financial recovery and find a new path to economic growth. A thorough understanding of the causes behind the country’s recession and the factors constraining a recovery are necessary to shape policy priorities. These are also important as an input into the discussions of the 2026 budget and to the ongoing negotiations with the International Monetary Fund (IMF). Using the wrong framework for these decisions could yield low economic growth, which would be harmful for a quick and decisive economic recovery. Conversely, improved economic outcomes and broad buy-in, following public consultations, will ease the implementation of politically difficult reforms. Thus, policymakers must take great care to develop a narrative about how to achieve progress in the short and medium terms that is adjusted to local circumstances.
