Lebanon Debt on ‘Unsustainable Path’ as World Bank Cuts Forecast
- Lender sees 1% growth, 155% debt-to-GDP ratio by year’s end
- Failure to form new government has held up billions in loans
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The World Bank halved Lebanon’s 2018 growth forecast to 1 percent, predicting its ratio of debt to gross domestic product would remain on an “unsustainable path.”
The international lender cited a central bank decision to abruptly halt subsidized housing loans as a main factor behind the slowdown in economic activity this year. The real estate sector has provided “a rare source of growth impetus since 2012,” while production in most of the country’s other industries has fallen off, the World Bank said in its October report.