This improvement is supported by political stabilization, including the election of a new President, formation of a government, and the appointment of a new governor at the Banque du Liban, which has helped restore confidence and reactivated public institutions.

Lebanon's foreign reserves have strengthened significantly, with gold reserves surging 41% year-on-year to $30 billion due to higher global prices.

Reforms have progressed, including amendments to banking secrecy laws, restructuring legislation, and enhanced AML/CFT compliance, especially after Lebanon was grey-listed by FATF.

External indicators show slight improvement, with the current account deficit narrowing to $5.6 billion in 2024, supported by $5 billion in net remittances, and foreign currency reserves rising to $11.3 billion by mid-2025.

Early economic indicators reflect positive trends, such as a 39% increase in cement deliveries, more than doubling of Customs receipts, and a 3.4% rise in passenger arrivals at Beirut airport.

Despite these signs of progress, experts remain cautious, emphasizing the need for sustained legislative and institutional efforts to ensure a durable and inclusive recovery.

The banking sector remains severely weakened, with balance sheets shrinking by nearly 60% since 2019, lending collapsing to $553 million, and branch networks contracting by 40%, although para-banking institutions have expanded.

Inflation has eased considerably, with consumer prices rising 15% in June 2025 compared to 42% a year earlier, driven by exchange rate stability, tighter fiscal policies, and increased dollarization.

Lebanon's economy is showing tentative signs of recovery in 2025 after years of collapse, with GDP expected to grow modestly following a 6.4% contraction in 2024.

Tourism revenues, which reached $4.7 billion in 2024, are expected to grow further following the lifting of some Gulf travel restrictions.

However, analysts warn that without comprehensive financial restructuring and a credible recovery plan, Lebanon risks remaining in a low-growth, consumption-driven economy.