IMF Staff Concludes Visit to Lebanon

IMF News, March 13, 2025

Source details

Press Release No. 25/062
Mission dates: March 10-13, 2025
IMF team leader: Mr. Ernesto Ramirez Rigo
Purpose: Fact-finding visit to meet Lebanese authorities and exchange views on the current economic situation and outlook.
End-of-mission note: The mission will not result in a Board discussion; the views are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board.

Lebanon’s economy remains "severely depressed."
Poverty and unemployment are "exceptionally high since the 2019 crisis."
The banking sector collapse continues to hamper economic activity and provision of credit, with depositors unable to access their funds.
Infrastructure and housing destruction and displacement resulting from the recent conflict have further exacerbated Lebanon's challenges.
Lebanon continues to host a large number of refugees, which "adds a significant burden to its economy."
Humanitarian and reconstruction needs are "substantial and require coordinated international support."

Recent policy actions have helped maintain some degree of economic stability.
Inflation declined and the exchange rate stabilized following:
- "the elimination of the fiscal deficit since mid-2023,"
- support from "the central bank's ending monetary financing and foreign exchange subsidies."
Revenue collection has improved despite the conflict, helping to support essential spending.
Expenditure pressures intensified in the second half of 2024.
IMF staff judged that these steps "are insufficient to address the ongoing economic, financial, and social challenges."

IMF staff welcomed the authorities' request for a new IMF-supported program to support efforts to address Lebanon's significant economic challenges.
Suggested focus areas for a comprehensive economic reform program:
- Fiscal and debt sustainability
- Financial sector restructuring
- Economic growth enablers
- Governance and state-owned enterprise reforms
- Strengthening data provision to enhance transparency and inform policymaking

"The IMF stands ready, together with the international community, to support the authorities’ efforts in addressing these challenges."
Following the fact-finding mission, IMF staff will remain in close contact with the authorities to help develop a comprehensive economic reform program.
The IMF team expressed gratitude to the Lebanese authorities and other stakeholders for "their constructive engagement and cooperation during this mission."

IMF Staff Concludes Visit to Lebanon — Press Release No. 25/062, March 13, 2025