Lebanese National Alliance Economic Committee Report: Lebanon’s Path to Economic Recovery
January 27, 2026 – Economic Committee Analysis

The Lebanese National Alliance Economic Committee presents its analysis of Lebanon’s economic performance in 2025, drawing on the latest World Bank Lebanon Economic Monitor and our ongoing assessment of the country’s recovery trajectory.

Key Economic Indicators in 2025
Lebanon’s economy demonstrated notable resilience in 2025, achieving 3.5% real GDP growth, marking the beginning of a gradual economic recovery after years of severe contraction, and signaling early signs of partial stabilization.

Drivers of Growth
· Increased private consumption, supported by robust remittance inflows and wage dollarization

· Tourism sector rebound despite regional conflicts and security tensions in southern Lebanon

· Renewed activity in real estate and construction sectors

· Improved political and institutional stability resulting from strategic reforms

Reform Progress
· Legislative Achievements: Passage of key economic and judicial laws

· Institutional Strengthening: Strategic appointments enhancing governance

· Exchange Rate Stability: Maintained since August 2023 through prudent fiscal management

Critical Reforms
· Financial Gap Law: Requires amendments to clearly define responsibilities and protect depositors without shifting undue losses onto them

· Tax System: Strengthen progressive direct taxation, curb tax evasion, and maintain fair profit margins for independent professionals

· Financial Rights: Address disparities in rights and obligations among all legitimate beneficiaries, emphasizing that education and security are fundamental pillars of a stable society and cannot be compromised

· Affordable Credit: Restore accessible lending schemes for individuals to support local consumption and small-to-medium investment

Financial Indicators in 2025
· Debt-to-GDP ratio projected to decline

· Fiscal balance approaching surplus

· Headline inflation fell to 15.2%, with single-digit projections for 2026

Economic Outlook for 2026
· Real GDP growth projected at 4%

· Continued contribution of tourism and remittances as primary growth drivers

· Modest reconstruction investments supporting recovery

Risks and Recommendations
Key Risks:
· Delays in implementing structural reforms

· Regional instability affecting economic confidence

· Limited reconstruction spending amid ongoing uncertainty

Recommendations:
· Accelerate structural reforms, including amendments to the Financial Gap Law

· Strengthen the progressive tax system and revenue mobilization

· Ensure financial rights of teachers, military personnel, retirees, and other legitimate beneficiaries

· Reintroduce affordable credit schemes for individuals

· Enhance institutional capacity and improve the investment climate

· Diversify the economic base and foster regional cooperation

Lebanon’s economic performance in 2025 demonstrates resilience and highlights that strategic reforms and institutional stability can transform fragile recovery into sustainable growth. The Lebanese National Alliance remains committed to policies that emphasize financial fairness, depositor protection, local economic stimulation, and the reinforcement of education and security as core societal pillars.

Prepared by the Lebanese National Alliance Economic Committee
Source: World Bank Lebanon Economic Monitor, Winter 2025 Edition (released January 22, 2026)