IMF Calls for Comprehensive Reforms to Boost Lebanon's Economic Resilience

Lebanon's economy remains robust even in the face of regional conflicts, with tourism helping to spur a moderate recovery, according to the International Monetary Fund (IMF). However, the IMF cautions that sustaining growth will necessitate extensive reforms. Julie Kozack, IMF spokeswoman, highlighted these points during discussions with Lebanese officials following the nation's request for IMF assistance in March 2025.

The ongoing talks are centered around two major concerns: restructuring the banking sector and formulating a medium-term fiscal strategy. Kozack stressed that Lebanon's economic resilience, partly buoyed by a robust diaspora and tourism, will only translate into sustainable growth through significant reforms addressing longstanding structural issues. These changes are also crucial for eliciting international aid necessary for Lebanon's reconstruction.

Kozack further advocated for a revised medium-term fiscal framework, incorporating specific measures to boost revenue for essential capital expenditures and a sovereign debt restructuring aimed at achieving debt sustainability.