Daijiworld Media Network - Beirut

Beirut, Sep 19: Israel's war on Lebanon and wider regional tensions have taken a “heavy toll” on the country's economy and living conditions, the International Monetary Fund (IMF) said following a four-day mission to Beirut.

The IMF said inflation in Lebanon remained in double digits, while the country's current account deficit had widened, mainly due to rising energy costs.

The Fund also highlighted extensive damage to infrastructure and housing, large-scale internal displacement and a significant deterioration in living standards among displaced people.

Despite the impact of the conflict, the IMF said Lebanese authorities had maintained a measure of macroeconomic stability through cautious fiscal and monetary policies.

The IMF said Lebanon would need a credible medium-term fiscal framework to restore debt sustainability while creating fiscal space for reconstruction, assistance to displaced people and social protection.