Lebanon’s economic collapse is likely to rank among the world’s worst financial crises since the mid-19th century

The report predicts that Lebanon’s economy will shrink by close to 10 percent in 2021 and stresses there is “no clear turning point on the horizon.” Lebanon defaulted on its debt last year, the currency lost around 85% of its value, and poverty is devastating a country once seen as a beacon of prosperity in the region. “The economic and financial crisis is likely to rank in the top 10, possibly top 3, most severe crisis episodes globally since the mid-nineteenth century,” the report said. The latest World Bank Lebanon Economic Monitor report, entitled “Lebanon Sinking: To the Top 3,” said such brutal economic collapses are usually the result of war. The complete meltdown of Lebanon’s economy during the past 18 months is widely blamed on corruption and mismanagement by the country’s hereditary political elite. Lebanon’s ruling class has failed to act on the country’s worst emergency in a generation, which was compounded by the coronavirus pandemic and a devastating explosion at Beirut port last August. Some teachers in Lebanon are now earning the equivalent of less than $200 monthly, doctors are increasingly looking for work abroad, and many students can no longer afford university tuition.

Lost in my own thoughts | Freelance writer | Dream pursuer | Coffee addict | Travel | Lifestyle Blogger