Beirut (Reuters)
The World Bank stated in a report that the Lebanese economy, which is witnessing one of the most severe crises in the world, continues to contract, but at a somewhat slower pace.
Lebanon’s real gross domestic product, which measures the total value of the country’s economy, is expected to contract by 5.4 percent in 2022 amid political paralysis and delays in implementing the economic recovery plan.
The World Bank said it had revised its estimate of the contraction of the Lebanese economy in 2021 to 7 percent from a previous estimate of 10.4 percent.
But his estimate of the 2020 contraction remained the same at 21.4 percent. The position of president is currently vacant in Lebanon, and his government does not have full powers in an unprecedented institutional vacuum, which observers say may take months to fill. And the World Bank considered that reaching a final agreement between Lebanon and the International Monetary Fund to obtain a loan does not seem likely, about seven months after Beirut reached an expert-level agreement with the fund.
The World Bank said: “Achieving a program with the International Monetary Fund remains elusive, in light of a divided parliament and with it a government and presidential vacuum, which raises more doubts about the ability to complete previous steps and reach a final agreement in the next few months.”
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