The International Monetary Fund says Israel’s war on Lebanon and wider regional tensions have taken a “heavy toll” on the country’s economy and living conditions, Al Jazeera reports.

Following a four-day mission to Beirut, the IMF says inflation remains in double digits and Lebanon’s current account deficit has widened, driven mainly by rising energy costs.

It also points to extensive damage to infrastructure and housing, large-scale internal displacement and a significant deterioration in living standards among displaced people.

Despite the impact of the conflict, the IMF says Lebanese authorities had maintained a measure of macroeconomic stability through cautious fiscal and monetary policies.

The IMF says Lebanon would need a credible medium-term fiscal framework to restore debt sustainability while creating room for spending on reconstruction, support for displaced people and social protection.