Renewed Conflict Derails Lebanon’s Fragile Economic Recovery

https://www.worldbank.org/en/news/press-release/2026/08/21/renewed-conflict-derails-lebanon-s-fragile-economic-recovery BEIRUT, August 21, 2026 – Lebanon’s economy is projected to contract by 6.4% in 2026 as renewed conflict reversed the fragile stabilization and recovery momentum recorded in 2025, according to the latest World Bank Lebanon Economic Monitor (LEM). While Lebanon continues to face urgent humanitarian and reconstruction needs, progress on reforms remains essential to restore confidence, revive growth, and support a durable recovery.