Lebanese Crisis Among Worst In World: World Bank

The World Bank on Monday termed Lebanon's economic crisis as among the worst in the world.

"Lebanon has witnessed many crises, but this crisis is the worst," Saroj Kumar Jha, the World Bank's director of the Middle East Department, said in statements cited by the Lebanese government during his participation in a meeting in Beirut attended by officials from Lebanon, the UN, EU and the World Bank.

He said the Lebanese crisis is "among the three worst crises in the world."

There is need "to achieve stability at the macroeconomic level," Kumar added.

The World Bank official warned that the economic situation in Lebanon is dire.

"The size of the economic contraction has reached 60% by the end of 2021," he added.

Since late 2019, Lebanon has been grappling with a severe economic crisis, including a massive currency depreciation as well as fuel and medical shortages.

The Lebanese currency has lost 90% of its value, eroding the people's ability to access basic goods, including food, water, healthcare, and education, while widespread power outages are common due to fuel shortages.

Kumar's statements came a day after Deputy Prime Minister Saadeh al-Shami said the Arab country as a state and its central bank have gone bankrupt.

Kumar, however, expressed optimism about overcoming the crisis if the national reform program led by the government of Prime Minister Najib Mikati is carried out well, which includes "a financial program, debt repayment, restructuring the financial and banking sector, and developing social protection systems."

For his part, Mikati said his government is working with the relevant authorities to form "a single and comprehensive vision for development, recovery and reform among those concerned," noting that they are close "to implement the necessary reforms."

*Writing by Ibrahim Mukhtar in Ankara -