The international rating agency Moody’s expects the Lebanese economy to grow!

Moody’s, the international rating agency, announced that the Lebanese economy is expected to contract by 2% in 2025 and to grow by 0.8% in 2026.

Commenting on the election of Army Commander Joseph Aoun as President of Lebanon after a vacuum that began at the end of October 2022, she said that these elections will pave the way for the formation of a new government with full powers, taking into account that the previous government was a caretaker government, noting that the elected president enjoys the support of donors. internationals.

The agency revealed that the full return of work to state institutions would help in continuing the implementation of the ceasefire agreement that was signed on November 26, and is also essential for securing international financing, knowing that the recent war has caused serious damage to the Lebanese economy with losses estimated at $ $8.5 billion, including material damage worth $3.4 billion.

In this regard, Moody’s expected the Lebanese economy to contract by about 10% in 2024, but it expected a recovery in economic activity in 2025 if the ceasefire continues.

She revealed that curbing financial and investment spending was key to achieving exchange rate and price stability, but it harms long-term growth potential, considering that debt sustainability can only be achieved through a significant reduction in the proportion of government debt to GDP estimated at 150% at the end of the year. 2024.

According to the report, the Lebanese economy is expected to contract by 2% in 2025 and to record growth of 0.8% in 2026. On the other hand, the report commented that inflation levels have decreased from 221.3% in 2023 to 67.4%. % in the year 2024, and it is expected that these levels will decline to 41.3% in the year 2025 and 35.1% in the year 2026.