Lebanese GDP to decrease by nearly 20% in 2020

Al-Monitor Staff

A picture shows a man standing at the booth of a money exchange company in the city of Jounieh north of Beirut on December 01, 2020. - Lebanon's economy is sinking into a "deliberate depression", the World Bank said on December 1 in a damning report stressing the authorities' failure to tackle the crisis. Lebanon's economy started collapsing last year as a result of years of corrupt practices and mismanagement. The crisis was made worse by a nationwide wave of anti-government protests that paralysed the cou — A picture shows a man standing at the booth of a money-exchange company in the city of Jounieh north of Beirut on Dec. 1, 2020. — JOSEPH EID/AFP via Getty Images

The World Bank released a bleak report on Tuesday on Lebanon’s economy in light of the financial crisis, COVID-19 and the aftermath of the August Beirut explosion.

“Lebanon is in a deliberate depression with unprecedented consequences for its human capital, stability, and prosperity,” read a press release from the international monetary institution.

The World Bank provides loans to low and middle income countries.

Lebanon’s financial crisis began in October 2019 amid a poor job market and protests over widespread corruption. The coronavirus pandemic and continued lockdowns have exacerbated the situation, as did the Aug. 4 explosion in Beirut’s port. Anti-government protests continued throughout the year. Banks have instituted limits on withdrawals as the amount of available US dollars has dwindled and the value of the Lebanese pound has plummeted.

Lebanese GDP to decrease by nearly 20% in 2020

The World Bank has proposed several reform measures as Lebanon continues to struggle with currency depreciation, the COVID-19 pandemic and more.

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