World Bank: Normalization of Lebanese crisis is no road for stabilization

The World Bank's Lebanon Economic Monitor presented in its spring issue findings from recent World Bank work on Lebanon.

It examined the continuous decline in the Lebanese economy amidst what it called "a normalization of the state of the crisis."

"Lebanon’s long economic contraction continued in 2022, albeit at a slower pace than in previous years," the report said, adding that a positive development is

the growth in tourist arrivals (by 57 percent).

"Nonetheless, the widening current account deficit, a long structural imbalance, continue to weigh down on growth prospects."

The systemic failure of Lebanon’s banking system and the collapse of the currency have resulted in a large, dollarized cash-based economy, the Lebanon Economic Monitor stated.

It said that the normalization of the state of crisis obscures the fact that

the Lebanese economy remains in precipitous decline, markedly distant from a stabilization path, let alone a recovery path.