Lebanon’s Q3 2026 findings recorded a sustained easing in annual inflation. Inflation fell for 3 straight months, from 20.0% in April 2026 to 15.7% in July 2026, a decline of 4.3 percentage points. Prices continued to rise year-on-year despite the slowdown.
The longer-running declines in income and the services share of GDP continued through 2024. Gross domestic income at constant prices fell for 7 straight years, from 67.2 trillion in local currency in 2017 to 39.5 trillion in 2024, down 41%. Services output as a share of GDP fell for 3 straight years, from 94.1% in 2021 to 35.7% in 2024, down 58 percentage points.
Government spending reached 4.90% of GDP in 2024, 8.5 percentage points below its 1990–2023 average of 13.4%. A gap that large appeared twice in the past 35 years. Taken together, the quarter’s findings documented easing inflation through July 2026 and longer-term declines in income and the services share, alongside an unusually low government spending share in 2024.
The findings were statistically detected from multilateral-source data, with the IMF named for the inflation series, and were checked before publication. The brief covered MENACodex findings published during Q3 2026, including observations from earlier periods.