{
  "id": 2437603,
  "title": "World Bank projects Lebanon’s economy to contract by 6.4% due to war",
  "url": "https://urgent.news/2026/08/21/world-bank-projects-lebanons-economy-to-contract-by-6-4-due-to-war-2437603",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-21T21:05:00.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today",
    "url": "https://www.freemalaysiatoday.com/category/highlight/2026/08/22/world-bank-projects-lebanon-s-economy-to-contract-by-6-4-due-to-war"
  },
  "original_language": "en",
  "account": "The World Bank has forecast that Lebanon's economy will shrink by 6.4% in 2026 due to the ongoing Israel-Hezbollah war. This projection follows Lebanon's previous financial crisis, which began in 2019, and the country's recent involvement in the latest Middle East conflict. The war has led to a collapse in tourism, weaker consumption, disrupted supply chains, increased insecurity, and prolonged displacement, all of which have contributed to the projected GDP contraction. Inflation is expected to rise to 17.5% this year, further reducing people's purchasing power. Prior to the conflict, Lebanon's economy had shown signs of recovery, with a real GDP growth rate of 4.2% in 2025, the highest since the 2019 financial crisis. To address these challenges, crucial reforms in banking sector restructuring and fiscal management are needed to restore confidence and mobilize financing for reconstruction and recovery. The International Monetary Fund (IMF) has welcomed recent amendments to a bank resolution law aimed at addressing Lebanon's banking crisis, describing it as a \"very good step\" that aligns with international best practices. Lebanon is currently in talks with the IMF, which plans to resume its meetings in Beirut next month.",
  "summary": "The World Bank says the figure represents a collapse in tourism, weaker consumption, disrupted supply chains, and prolonged displacement.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Free Malaysia Today",
        "title": "World Bank projects Lebanon’s economy to contract by 6.4% due to war",
        "url": "https://urgent.news/2026/08/21/world-bank-projects-lebanons-economy-to-contract-by-6-4-due-to-war",
        "published": "2026-08-21T21:05:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}