Economics

Lebanon Blast May Deepen This Year’s Economic Contraction to 24%

  • Recession now likely worse than prior 15% estimate, IIF says
  • Damage from blast like to exceed $7 billion, or 14% of output
People inspect damage inside a car dealership in Beirut on Aug. 7.Photographer: Hasan Shaaban/Bloomberg
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Lebanon’s economy may shrink by a quarter this year after last week’s blast added to a collapse in output spurred by the pandemic, soaring inflation and a weakening currency, the Institute of International Finance said.