Economical overview
Higher prices for community services such as
water, electricity and telecommunications services.
Close between system interruptions. Limited withdrawals
from the banks. More and more people are losing their
jobs. A currency that collapsed in value. Lebanon's
economy is in an almost free fall, with threats of state
bankruptcy and the urgent need for international crisis
loans.
Lebanon's economy is dominated by the service sector.
Banking and finance, tourism, and construction are
important industries, while industry and agriculture
have a minor role.
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Countryaah.com:
Major imports by Lebanon, covering a full list of top products imported by the country and trade value for each product category.
The country is scarce for natural resources and
limited with its own industrial products, which creates
a large dependence on imports. Since imports are several
times larger than exports, there is a large deficit in
trade abroad. The deficits that have risen sharply since
2005 have been partially offset by revenues from the
service sector, foreign aid, and the money that Lebanese
abroad send home. But the gaps have also been filled by
loans. Lebanon's government debt is one of the highest
in the world, measured in terms of GDP, and the payments
on the loans pose a heavy burden to the state. In March
2020, when a loan would have been paid, the message
came: Lebanon cannot afford it. And soon the government
announced that no loans with maturity later in the year
would be paid. And then the consequences of the
coronavirus pandemic could not even be calculated.
Before the Civil War (1975-1990), Lebanon was the
region's leading financial and trade center. But during
the war, tourists disappeared, many foreign companies
and banks and well-educated labor emigrated.
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Abbreviationfinder.org: Check this abbreviation website to find three letter ISO codes for all countries in the world, including LBN which represents the country of Lebanon.
Efforts were made after the war to regain Lebanon's
leading position as a financial center. Lebanese who
moved abroad returned and investors from the Arabian
Peninsula built luxury apartments in the belief that
Beirut would once again become the region's
entertainment center, but Beirut faced competition from
new rivals such as the countries around the Persian
Gulf. However, the post-war reconstruction caused growth
to be postponed. Between 1992 and 2005, the economy grew
by just over 4 percent per year on average.
After the assassination of politician Rafiq al-Hariri
in 2005 (see Modern History), foreign
investment declined again and tourism declined. When the
Syrian army left the country that year, a recovery
began, but it was interrupted on the back of fighting
between Israel and Hezbollah in 2006. The war caused
major damage to infrastructure and the economy. It was
reported that eighty percent of the country's roads and
nearly all bridges destroys T s by Israeli bombing.
Lebanon again received financial aid from the outside
world to build up what was ravaged and the wheels
started spinning again. Growth exceeded 8 percent a year
from 2007 to 2010. Due to its relative isolation from
the world market, Lebanon was not affected by the
international financial crisis that developed from 2008
onwards.
By contrast, the civil war in Syria from 2011 has had
a negative impact on Lebanon's economy and growth has
slowed. The side effects of the war in the form of
increased violence and contradictions between Lebanese
people's groups caused foreign investors to pull their
ears, as did the tourists. In 2010, tourism remained at
the same level as before the Lebanese civil war, but the
sector has since declined. Most tourists come from
neighboring states such as Saudi Arabia and Jordan.
Among Europeans, the French are the largest group.
The Syrian war has also led to a sharp decline in
exports of goods and services as a large part of the
Syrian market for Lebanese goods and services has
disappeared. The large influx of refugees from Syria is
putting further pressure on the economy and the
country's resources. Already in 2014, the World Bank
estimated that the refugee burden cost Lebanon $ 7.5
billion, which is about one-sixth of the country's GDP.
In order to get the growth going, in 2013 a stimulus
program was launched that included loans on favorable
terms for, among other things, house purchases,
start-ups of companies, energy saving measures and
research. In 2018, Lebanon received extensive promises
of loans and assistance at an international donor
meeting, but much of the loans would be linked to
investments in infrastructure, and the failure of
leading politicians to agree on a new government after
the election in the same year meant that the loans could
not be lifted and the projects put in place. started.
Only in early 2019 could a new unity government be
formed, but the governing bodies soon became heavily
employed by a popular protest wave, which directed their
anger both at the political system and at high prices
for community services such as electricity and
telecommunications services. Already in the autumn, the
government was forced to resign. One of the main demands
of the protest movement was then that an expert
government be formed; the constitutional system that
distributes power between religious and ethnic groups is
considered by critics to lead to both corruption and
incompetence. In early 2020, the country was given a new
government, but it has been met by mistrust of the
protest movement.
A crisis plan has been drawn up, but in the meantime
the problems have continued to grow. There are great
demands on the government to implement reforms, under
the conditions set for the donor countries' pledges from
2018 to be fulfilled. Lebanon seeks help from, among
others, the International Monetary Fund (IMF); In total,
according to Prime Minister Diab, $ 10 billion will be
needed, in addition to the 11 billion lenders put into
view in 2018. Analysts already predicted that before the
corona pandemic, Lebanon's economy would shrink in 2020.
A note for decisions taken during the dual crisis g o
ller odli n grams of marijuana for medical use, which
was allowed in April 2020. Despite the fact that both
the cultivation and sale of consumption of cannabis has
been completely banned, constitutes illegal cultivation
since decades a-million in eastern Lebanon. Legalization
of a certain part of the culture makes it now possible
for even the affected state to receive income from the
business.
Lebanon's main export goods were fruits and
vegetables in the past. In recent years, the largest
incomes have come from pearls and other jewelry. Oil is
the largest import commodity.
In addition to the official trade, extensive
smuggling of goods to Syria is ongoing.
Beirut's port is the most important of a handful of
ports. Most of all freight to and from Lebanon goes via
Beirut, but Tripoli is also an important port. The civil
war in Syria has increased traffic to and from Beirut's
port as other routes for Syrian trade were cut off.
Projects are underway to expand the port of Beirut. The
port of Tripoli is also under renovation.
Lebanon and the EU have entered into an association
agreement, which means that tariffs and other barriers
to trade were settled during a transitional period until
2018. Through the agreement, trade between the EU and
Lebanon has increased significantly. It now accounts for
one third of Lebanon's entire foreign trade.
Lebanon applied for membership in the World Trade
Organization (WTO) in 1999, but the accession process
has stalled and Lebanon has only achieved observer
status.
About our sources
FACTS - FINANCE
GDP per person
US $ 8,270 (2018)
Total GDP
US $ 56,639 million (2018)
GDP growth
0.2 percent (2018)
Agriculture's share of GDP
2.9 percent (2018)
Manufacturing industry's share of GDP
7.8 percent (2018)
The service sector's share of GDP
74.7 percent (2018)
Inflation
3.1 percent (2019)
Government debt's share of GDP
151.0 percent (2018)
External debt
US $ 73,526 million (2017)
Currency
Lebanese pound
Merchandise exports
US $ 3 755 million (2017)
Imports
US $ 18 214 million (2017)
Current account
- US $ 12 396 million (2017)
Commodity trade's share of GDP
43 percent (2018)
Main export goods
jewelry, metals, vehicles, machinery and electronics,
wine, tobacco and vegetables
Largest trading partner
Syria, South Africa (for export) 1
- China, Italy and US (for import)Sources
2005
December
Newly elected MP is murdered
On the same day that the first investigation into Hariri's murder is handed
over to the UN, Gibran Tueni, the head of the newspaper an-Nahar, is killed in a
bombing operation. He was a newly elected MP and strongly critical of Syria.
June
Several Syrian critics killed in assaults
During the election period, the well-known journalist, Samir Qasir, who wrote
Syrian-critical articles in the newspaper an-Nahar is murdered. He is killed by
a bomb placed in his car. Qasir was a Palestinian and had French citizenship.
Two days after the election, anti-Syrian politician George Hawi, who was leader
of the Communist Party, was killed by a car bomb in Beirut. Three weeks later,
the outgoing government minister, Elias Murr, is injured by a car bomb that
calls for two fatalities. It is the first attack in 2005 aimed at a
Syrian-friendly politician.
May
Elections are held across the country
Ahead of the May and June 2005 elections, politicians from various groups
usually form broad alliances to get the largest possible dividend. The election
takes place four Sundays in a row. In Beirut, all mandates go to the so-called
Martyr Rafiq al-Hariri list, which was dominated by the
Future Movement led by the murdered leader's son Saad al-Hariri. In the
south, the Hezbollah and Shia Muslim Amal Alliance Resistance and
Development are given every mandate. In the central parts of the
country, Hezbollah wins -alliance most mandates in the Beka Valley and in the
Drusian Shouf Mountains southeast of Beirut, Walid Jumblatt's Drusian party,
which is on Hariri's list, wins. In the Christian areas north and east of
Beirut, most of the mandate goes unexpectedly to Michel Aoun's alliance. This
former general, who has been strongly anti-Syrian, has just returned from his
exile. Before the election, he begins a collaboration with pro-Syrian
politicians, including a Drusean rival to Jumblatt. This means an increased
divide among the Christian Maronites and a severe setback for their former
largest factions, the Lebanese Forces (FL) Party, and
Kataeb. In the last round of elections, in northern Lebanon on June 19,
Hariri's opposition alliance wins all the mandates that are at stake.
The final outcome will be that the Future Movement and its allies in the
March 14 alliance conquer a total of 71 of Parliament's 128 seats. Hezbollah and
other groups in the March 8 movement win 57 seats. New prime minister becomes
Fouad Siniora, former finance minister and close associate of the murdered Rafiq
al-Hariri.
April
Syrian troops out of Lebanon
Syria announces at the end of the month that the country has withdrawn its
troops from Lebanon.
Temporary ministry should prepare elections
The resignation of Omar Karami, who has resigned, attempts to form a new
government, and a temporary minister is appointed to prepare for parliamentary
elections in May and June.
March
The UN proposes an international murder investigation
At the end of March, a UN expert group questions Lebanon's ability to
effectively investigate the assassination of Hariri and proposes an
international investigation. The UN report also gives testimony that the Syrian
President in 2004 had stated direct threats against Hariri to get him to accept
an extended mandate for incumbent President Emile Lahoud, who had Syria's
support.
Syrian troops should be withdrawn
Syrian President Bashir al-Assad promises to withdraw Syria's troops from
Lebanon. Hizbullah leader Sheikh Hassan Nasrallah claims that chaos could erupt
if Syrian troops are taken home, and Hezbollah mobilizes half a million
participants on March 8 in the largest demonstration to date. On March 14, a
month after Hariri's assassination, the anti-Syrian Lebanese are filling streets
and squares in Beirut. One million people are said to have participated. These
two dates may name two political alliances: the March 8 movement and the March
14 alliance, which will dominate politics in the coming decade.
The following weeks, several bomb attacks in the Beirut area's Christian
district occur and three people are killed.
February
The former prime minister is murdered
Former Prime Minister Rafiq al-Hariri is murdered in a car bomb attack in
Beirut. In total, the attack requires 22 lives in addition to the suicide
bomber. The attack on Hariri is followed by huge demonstrations against Syria
suspected of the act. Syria denies any involvement in the murder and blames
Israel instead. The pro-Syrian government resigns under pressure.
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