About Lebanon & Key Financial Statistics

About Lebanon and Key Financial Statistics

Overview of Economy:

Lebanon has a free-market economy and a strong laissez-faire commercial tradition. The government does not restrict foreign investment; however, the investment climate suffers from red tape, corruption, arbitrary licensing decisions, complex customs procedures, high taxes, tariffs, and fees, archaic legislation, and weak intellectual property rights. The Lebanese economy is service-oriented; main growth sectors include banking and tourism. The 1975-90 civil war seriously damaged Lebanon's economic infrastructure, cut national output by half, and derailed Lebanon's position as a Middle Eastern entrepot and banking hub. Following the civil war, Lebanon rebuilt much of its war-torn physical and financial infrastructure by borrowing heavily, mostly from domestic banks, which saddled the government with a huge debt burden. Pledges of economic and financial reforms made at separate international donor conferences during the 2000s have mostly gone unfulfilled, including those made during the Paris III Donor Conference in 2007, following the July 2006 war. Spillover from the Syrian conflict, including the influx of more than 1 million Syrian refugees, has increased internal tension and slowed economic growth to the 1-2% range in 2011-13, after four years of averaging 8% growth. Syrian refugees have increased the labor supply, but pushed more Lebanese into unemployment. Chronic fiscal deficits have made Lebanon’s debt-to-GDP ratio the third highest in the world; most of the debt is held internally by Lebanese banks. Weak economic growth limits tax revenues, while the largest government expenditures remain debt servicing and transfers to the electricity sector. These limitations constrain other government spending and limit the government’s ability to invest in necessary infrastructure improvements, such as water, electricity, and transportation.

Gross Domestic Product (In USD):

$81.42 billion (2014 est.)

$79.82 billion (2013 est.)

$77.88 billion (2012 est.)

Composition of Gross Domestic Product:

% Agricuture: 5.5

% Industry: 24.8

Composition of Labor Force by Occupation:

% Agriculture: 82

% Industry and services: 18

Per Capita Income:

$18,100 (2014 est.)

$17,700 (2013 est.)

$17,300 (2012 est.)

Exports:

$3.787 billion (2014 est.)

$4.499 billion (2013 est.)

Key Export Commodities:

jewelry, base metals, chemicals, consumer goods, fruit and vegetables, tobacco, construction minerals, electric power machinery and switchgear, textile fibers, paper

Export Partners:

Saudi Arabia 10.8%, UAE 9.7%, Syria 8.7%, Iraq 7.6%, South Africa 7%, Switzerland 4% (2014)

Imports:

$18.99 billion (2014 est.)

$19.67 billion (2013 est.)

Key Import Commodities:

petroleum products, cars, medicinal products, clothing, meat and live animals, consumer goods, paper, textile fabrics, tobacco, electrical machinery and equipment, chemicals

Import Partners:

China 11.8%, Italy 7.7%, US 6.8%, France 6.2%, Germany 5.4%, Russia 4.5%, Greece 4.1% (2014)

Inflation Rate (Consumer Price Index):

1.9% (2014 est.)

4.8% (2013 est.)

Exchange Rate to USD:

Lebanese pounds (LBP) per US dollar -

1,507.5 (2014 est.)

1,507.5 (2013 est.)

1,507.5 (2012 est.)

1,507.5 (2011 est.)

1,507.5 (2010 est.)

Unemployment Rate:

NA%

S&P Rating:

Standard & Poor's Ratings:

• • AAA: The best quality borrowers, reliable and stable

  • AA: Quality borrowers, a bit higher risk than AAA

  • A: Economic situation can affect finance

  • BBB: Medium class borrowers, which are satisfactory at the moment

  • BB: More prone to changes in the economy

  • B: Financial situation varies noticeably

  • CCC: An obligor rated currently vulnerable, and is dependent upon favorable business, financial, and economic conditions to meet its financial commitments.

Ref 2012-2014: CIA World Factbook, Wikipedia, PWC, EY, Standard & Poors ratings