The crisis is ravaging the Lebanese economy… What are the solutions?

The Lebanese economy is facing one of the worst economic crises in contemporary history, which requires the necessity of undertaking decisive structural reforms, otherwise, the country’s economy will witness further deterioration.

A report by the International Monetary Fund revealed that Lebanon’s public debt could reach nearly 550% of the gross domestic product by 2027, noting that the reform measures in Lebanon fall short of what was advised and expected.

The International Monetary Fund explained that the Lebanese economy has contracted by about 40% since the start of the crisis, and it has lost two-thirds of its foreign currency reserves, while the Lebanese pound has lost 98% of its value.

Amine Goumoriya, a Lebanese writer, and political analyst, said that inflation in Lebanon is increasing significantly, and Lebanon is experiencing the worst economic crisis in its history, with the Lebanese pound losing more than 98% of its value, and the majority of the population living below the poverty line amid strict banking restrictions and a severe liquidity crisis.

The Lebanese writer and political analyst added that the existing political vacuum in Lebanon due to the absence of a presidency has made the economic situation worse, with a caretaker government incapable of making necessary decisions, including the reforms required by the international community to provide support.

He emphasized that the delay in implementing a comprehensive plan for reform and recovery will lead to the worsening of losses in Lebanon in the coming period, which foreshadows a major catastrophe in Lebanon.