IMF mission concludes Lebanon visit, forecasts sharp 2026 economic contraction

An IMF mission ended a four-day visit to Beirut, projecting a significant contraction of Lebanon's economy in 2026 amid renewed regional conflict.

• The IMF mission, led by Ernesto Ramirez Rigo, held talks in Beirut from September 15–18 on macroeconomic prospects and financial reforms.
• Rigo said the Hezbollah–Israel conflict caused severe damage, with inflation in double digits and a widened current account deficit driven by energy costs.
• Finance Minister Yassin Jaber said talks focused on the financial gap law, stating the seven-year banking crisis can no longer tolerate delay.
• Central Bank Governor Karim Said predicted $8.1 billion would be returned to depositors by the end of 2026.
• The mission welcomed progress on budget management and banking law amendments, urged passage of the VAT increase to 12%, and pledged support for a reform agenda under an IMF program.