Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Local, regional crises whip Lebanese economy - Report  Join our daily free Newsletter

MENAFN - Kuwait News Agency (KUNA) - 21/08/2014
No. of Ratings : 0
Add to Mixx!

(MENAFN - Kuwait News Agency (KUNA)) The Lebanese economy has been gripped with an unprecedented crisis; the alarmingly mounting number of Syrian refugees forecast to exceed 1.5 million, more than 37 percent of the Lebanese population, according to a report issued by the official National News Agency (NNA) on Wednesday.

Despite the prevailing gloomy picture about the economy of this Mediterranean country, there have been recently some positive signs that may serve in favor of the ailing economy; such as formation of the national coalition government, two Saudi grants to the army - one totaling USD three billion and the second USD one billion, and the comeback of the ex-premier Saad Al-Hariri from abroad.

Some of the negative factors were failure to elect a new president, terrorist attacks that negatively impacted on the economy in general and the tourism sector in particular, soar of unemployment reaching 47 percent and lack of an adequate investment atmosphere. Furthermore, the national economy has proven again that it is very much vulnerable to
regional events.

The International Monetary Fund, in a recently-released report, affirmed that lack of financial resources hindered structural reforms, affected interest rates, maintained the public debts constituting 150 percent of the domestic income. The report also shed light on various problems, such as the deficit in the electrical sector, estimated at 3,100 billion Lebanese pounds (one USD dollar equals roughly USD 1,500) per annum, advising that authorities need to tackle this sector, particularly power wasting, estimated at 50 percent in some areas.

Economic activity is forecast to remain week during the rest of the year, due to lack of solutions to the piling crises and continuation of the strife in neighboring Syria, where economic growth is predicted at 1.8 percent this year and 2.5 percent the next year.

According to the Beirut Traders Association-Fransa Bank Retail Index, businesses on the domestic market shrank 13 percent; however, some experts put it in the range of 30 percent.

Annual deficit of the trade balance was estimated at USD 209 million, due to decline of exports to USD 654 million from USD 1.6 billion. China came first among exporting countries to Lebanon and South Africa was on top of countries that import from Beirut.

Hotels' occupancy rate was estimated at 49 percent in the first half of the year, signaling continuing stagnation in the sector, considered the main foundation of the economy.

Lebanon's industrial exports shrank by 17.03 percent due to disruptions in land transportation and high costs of air and sea maritime shipping.

The real-estate sector dropped 1.05 percent, partly due to lack of foreigners' investment, however, well-off Lebanese in Diaspora continued to show interest in properties' purchases.

At the monetary level, the pound is forecast to remain stable due to abundant reserves of the central Bank, estimated at USD 37 billion, and high liquidity of foreign currencies in the banking sector.

Public debt is estimated at USD 65.70 billion. As to the banking sector it would grow at seven percent, due to depositors' confidence. The banks' lending fell due to persistent economic hazards and stagnation in the real-estate sector.

Dr. Ghazi Wazni, a prominent economist, predicted that the economic growth in the remaining months of the year would not exceed two percent due to retreat of the commercial sector by 20-25 percent.


Kuwait News Agency (KUNA)

  MENA News Headlines
 Oct 24 2016 - King holds first follow-up meeting with judicial reform panelJordan Times
(MENAFN - Jordan Times) AMMAN — His Majesty King Abdullah on Sunday reiterated that judicial reform is a priority in the coming stage. He made his remarks at a meeting with the head and members of ...

 Oct 24 2016 - Kuwait participated effectively in UNTOC Conf. in Vienna - OfficialKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) VIENNA, Oct 24 (KUNA) -- Kuwait took part effectively in the concluding sessions, and formulating the final recommendations of the Conference of Parties to the UN ...

 Oct 24 2016 - Kuwait- OPEC oil price drops to USD 48.08 pbKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) VIENNA, Oct 24 (KUNA) -- Price of OPEC's basket of crudes dropped on Friday by 43 cents settling at USD 48.08 per barrel, compared to USD 49.51 pb on Thursday, ...

 Oct 24 2016 - Kuwait- His Highness the Amir receives acting audit bureau chiefKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) KUWAIT, Oct 24 (KUNA) -- His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah received at Bayan Palace on Monday Acting President of the State Audit ...

 Oct 24 2016 - Kuwait- His Highness Crown Prince receives acting audit bureau chiefKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) KUWAIT, Oct 24 (KUNA) -- His Highness the Crown Prince Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah received at Bayan Palace on Monday Acting President of the State ...

 Oct 24 2016 - Kuwait- His Highness PM receives acting audit bureau chiefKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) KUWAIT, Oct 24 (KUNA) -- His Highness the Prime Minister Sheikh Jaber Al-Mubarak Al-Hamad Al-Sabah received at Bayan Palace on Monday Acting President of the ...

 Oct 24 2016 - Kuwait- Coalition launches 4 strikes against IS in Syria, 10 in IraqKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) WASHINGTON, Oct 24 (KUNA) -- Coalition military forces conducted 14 strikes against the so-called Islamic State (IS), four in Syria and 10 in Iraq, the Combined ...

 Oct 24 2016 - Kuwait, Eq. Guinea ink MoU for consultationsKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) The State of Kuwait and the Republic of Equatorial Guinea on Monday signed a memorandum of understanding regulating bilateral consultations between the two ...

 Oct 24 2016 - Kuwait- Some 41 more hopefuls stand for Parl't electionsKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) KUWAIT, Oct 24 (KUNA) -- Candidates contesting upcoming parliamentary elections slated for November 26th continued to file their candidacies on Monday, as some 41 ...

 Oct 24 2016 - Kuwait- Info Min. Sheikh Salman underscores private media roleKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) KUWAIT, Oct 24 (KUNA) -- Private television stations in the State of Kuwait play a major role in news reporting and guiding citizens and promoting their concerns, ...





Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

Main News
News By Industry
News By Country

Search News
Market Indices
Quotes & Charts

Global Indices
Arab Indices


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Economic Calendar
Financial Glossary

Financial Calculators

RSS Feeds [XML]

Corporate Monitor


Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters

© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help