Lebanon economy to grow 4.7 pct in 2025 amid fragile recovery: World Bank

BEIRUT, June 19 (Xinhua) -- Lebanon's economy is projected to grow by 4.7 percent in 2025, supported by progress on key reforms, a rebound in tourism, stronger consumer spending, and modest capital inflows, the World Bank said on Thursday in its latest Lebanon Economic Monitor.

The report offered a cautiously optimistic outlook but warned that Lebanon's recovery remains vulnerable to political and security instability, as well as the country's prolonged financial crisis, which continues to deter large-scale investment.

Inflation is forecast to ease to 15.2 percent next year, assuming the exchange rate remains stable and global inflationary pressures continue to subside, the World Bank said. Improved tax collection and a more balanced budget could create limited fiscal space to boost spending on essential public services. However, persistent fiscal pressures will remain a challenge, underscoring the need for sustained structural reforms.

"Recent political developments brought renewed momentum and offer an opportunity to address the fundamentals of Lebanon's overlapping financial, economic and institutional crises," said Jean-Christophe Carret, World Bank Middle East division director. "By prioritizing actionable, high-impact measures, Lebanon can tackle critical issues and move toward sustainable recovery." ■