The World Bank criticized the Lebanese authorities for lacking action regarding the ongoing crisis in Lebanon, in a report that projected further deceleration in the country’s economic growth.
In its Lebanon Economic Monitor report, the World Bank said that poverty was likely to grow and affect more than half of the Lebanese population by the next year.
It also projected a whopping 194% debt-to-GDP, which was 171% at the end of 2019. Furthermore, the report projected that real economic growth will decelerate to -19.2% in 2020.
“A year into Lebanon’s severe economic crisis, deliberate lack of effective policy action by authorities has subjected the economy to an arduous and prolonged depression,” the World Bank said in a statement on Tuesday.
“Lebanon is suffering from a dangerous depletion of resources, including human capital, with brain drain becoming an increasingly desperate option.”
On that note, the emigration of Lebanese youth increased to an all-time high this year as graduates and prospective master’s students are seeking security outside Lebanon, which has been encumbered with severe economic and financial crises for over a year.
In its criticism of their performance, the World Bank said that the Lebanese authorities “have disagreed between themselves on the assessment, diagnosis, and solutions for the crisis.”
This resulted in a slew of “uncoordinated, non-comprehensive, and insufficient policy measures that have worsened economic and social conditions.”
In related news, the global professional services firm Alvarez & Marsal recently canceled its contract with the Lebanese government after Lebanon’s central bank refused to comply with the requirements of the forensic auditing of its accounts.
The audit was a crucial condition set by international donors for Lebanon to receive their financial support in order to revitalize its economy and recover from the debilitating crisis.