Inflation squeezes Lebanese households as World Bank sees 6.4% contraction

The World Bank projects Lebanon's economy will shrink 6.4% in 2026 after an estimated 4.2% growth in 2025, according to its Lebanon Economic Monitor reported by Al Jazeera and L'Orient Today.

It blames the March 2026 escalation, which damaged housing and infrastructure, displaced communities and hit tourism and domestic demand. Inflation is expected to reach 17.5%.

France 24 reported today that rising prices are squeezing households across the country.

The bank's regional director, Dahlia Khalifa, said banking-sector restructuring and sound fiscal management are critical to restore confidence and finance reconstruction.