The IMF has warned that Lebanon’s inflation could continue to soar, and public debt could reach nearly 550% of GDP by 2027 without significant reforms. Despite reaching a preliminary agreement with the IMF over a year ago, Lebanese officials have made limited progress on required reforms, including debt restructuring, overhauling the public electricity system, and improving governance. FX reserves have shrunk to around USD 10 bln, compared to a pre-crisis peak of USD 36 bln.