Lebanon Economic Forecast
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Lebanon has a free market economy, one with a solid laissez-faire commercial tradition. When it comes to Foreign Direct Investment (FDI), this country’s government does not impose any restrictions.
On the other hand, Lebanon faces many economic challenges because of cronyism and nepotism, as well as other types of corruption, a significant amount of red tape, problems pertaining to licensing, high fees, taxes, and tariffs, weak intellectual property rights, and outdated legislation.
Lebanon has a free market economy, one with a solid laissez-faire commercial tradition. When it comes to Foreign Direct Investment (FDI), this country’s government does not impose any restrictions.
On the other hand, Lebanon faces many economic challenges because of cronyism and nepotism, as well as other types of corruption, a significant amount of red tape, problems pertaining to licensing, high fees, taxes, and tariffs, weak intellectual property rights, and outdated legislation.
In addition, the civil war from 1975 to 1990 contributed to damage of the country’s economy specific to its facilities and infrastructure. On a positive note, Lebanon’s service-oriented sectors are doing well to include financial institutions, banks, transportation, financial services, and tourism.
Additionally, both financial and physical infrastructure damaged or destroyed by the war has been rebuilt although significant money was borrowed to accomplish this. From 2000 to 2006, despite $2 billion (US dollars) in bilateral aid, more facilities, and infrastructure damage was experienced in 2005 connected to the Israeli and Hizballah dispute. While some issues exist because of the global financial crisis, Lebanon has enjoyed political stability and economic growth since the 2008 Doha Accord.
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Lebanon GDP Forecast
The interesting thing about the Lebanon economy is its resilience in the face of military, social and political challenges. While the world went through a period of recession during the financial crisis, somehow this country’s economy experienced 9% GDP growth. From there, the Lebanon GDP (Gross Domestic Product, Current Prices, US Dollar) was enhanced with controlled banking regulations whereby credit was restricted.
In 2010, GDP (purchase power parity) was $59.9 Billion, making it the 83rd largest economy in the world. GDP is expected to rise to $63.662 Billion in 2011, and to continue rising steadily until 2015, when it is forecasted to reach $79.651 Billion. GDP growth will average 4% – 5% during the next five years.
GDP Per Capita was $15,330.96 in 2010, and this is expected to rise to $19,109.19 by 2015.
Lebanon Unemployment Forecast
Today, the Lebanon population is 3.9 million, with a 1.48 million labor force supplemented by around 1 million foreign workers. Employment is strong thanks partly to a strong tourism sector, as well as a relatively strong technical and industries sector. The last available Lebanon unemployment rate was from mid 2010, which put unemployment at around 10%.
Of all people employed, approximately 35% are involved with jobs in the services sector, which includes tourism and transportation, along with finance and banking.
Lebanon Inflation Rate Forecast
Moving to the Lebanon inflation rate, the Central Bank has managed to curtail the difficult situation in 2008, when inflation hit 10.758%. By the end of 2010 that had dropped to 4.975%, and this is expected to further moderate over the next five years, dropping to 2.22% by 2015.
Lebanon Current Account Balance Forecast
The Current Account Balance for Lebanon in year 2010 is -11.087% of GDP . In 2009, the Current Account Balance for Lebanon was -9.49 %, meaning that it is about 16% worse. This is forecasted to drop to 9.883% by 2015.
