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World Bank Forecasts 6.4 Percent Economic Contraction for Lebanon Amid War

Mountain Time
Local time
8:13 PM in Beirut
Where
Beirut, Lebanon

The World Bank projected Lebanon's real GDP will shrink 6.4 percent in 2026, 'reflecting the collapse in tourism, weaker consumption, disrupted supply chains, heightened insecurity, and prolonged displacement,' with inflation rising to 17.5 percent.

Why it matters

Lebanon was still recovering from its 2019 financial collapse and the 2024 war when Hezbollah joined this one in March; Lebanese authorities say Israeli strikes have killed more than 4,300 people.

Sources (2)

Confidence: Stated by a named government, military, or institution. Not independently confirmed. About confidence labels

Correction

  • Corrected the time from 3:40 PM Beirut time, Aug 21, 2026 to 8:13 PM Beirut time, Aug 21, 2026; revised the summary; revised the context note; reclassified it from economic to humanitarian; updated the sourcing note; added a source: CBS News. Why and evidence