Economy of Lebanon
Encyclopedia
The economy of Lebanon is a developing economy, with a private sector that contributes to 75% of aggregate demand and a large banking sector that supports this demand. In 2009, Lebanon
ranked 33rd in the Human Poverty Index. The IMF forecast a growth of 7% for Lebanon's real GDP in 2010 and 2011 following 9% growth in 2009 and 8.5% in 2008.http://www.bi-me.com/main.php?id=43642&t=1&c=34&cg=4&mset=1011
seriously damaged Lebanon
's economic infrastructure
, cut national output by half, and had major consequences for Lebanon's position as a Middle East
ern entrepot
and bank
ing hub. After the war, the central government regained its ability to collect taxes and control over key port and government facilities. As a result, GDP per capita expanded 353% in the 1990s.
Economic recovery has been helped by a financially sound banking system and resilient small- and medium-scale manufacturers, with family remittances, banking services, manufactured and farm exports, and international aid as the main sources of foreign exchange. Lebanon's economy has made impressive gains since the launch of "Horizon 2000," the government's $20 billion reconstruction program in 1993. Real GDP
grew 8% in 1994 and 7% in 1995 before Israel
's Operation Grapes of Wrath
in April 1996 stunted economic activity. Real GDP grew at an average annual rate of less than 3% per year for 1997 and 1998 and only 1% in 1999. During 1992-98, annual inflation fell from more than 100% to 5%, and foreign exchange reserves
jumped to more than $6 billion from $1.4 billion. Burgeoning capital inflows have generated foreign payments surpluses, and the Lebanese pound has remained relatively stable. Progress also has been made in rebuilding Lebanon's war-torn physical and financial infrastructure. Solidere
, a $2-billion firm, is managing the reconstruction of Beirut's central business district
; the stock market
reopened in January 1996, and international banks and insurance companies are returning. The government nonetheless faces serious challenges in the economic arena. It has had to fund reconstruction by tapping foreign exchange reserves and boosting borrowing. Reducing the government budget deficit is a major goal of the current government. The gap between rich and poor has widened in the 1990s, resulting in grassroots dissatisfaction over the skewed distribution of the reconstruction's benefits and leading the government to shift its focus from rebuilding infrastructure to improving living conditions.
For purchasing power parity comparisons, the US Dollar is exchanged at 1,403.29 Lebanese Pounds only. Mean wages were $8.95 per manhour in 2009.
has calculated the opportunity cost of conflict
for the Middle East from 1991-2010 at a whopping $12 trillion. Had there been peace in the region, Lebanon’s share during this period would be almost a $100 billion (according to 2006 prices). In other words, had there been peace and cooperation since 1991, every Lebanese citizen would be earning over $11,000 instead of the $5,600 in 2010.
Lebanon has a competitive and free market
regime and a strong laissez-faire
commercial tradition. The Lebanese economy is service-oriented; main growth sectors include banking and tourism. There are no restrictions on foreign exchange or capital movement, and bank secrecy
is strictly enforced. Lebanon has recently adopted a law to combat money laundering
. There are practically no restrictions on foreign investment. There are no country-specific U.S. trade sanctions against Lebanon.
from Lebanese abroad to family members within the country total $8.2 billion and account for one fifth of the country's economy. Nassib Ghobril, the head of research and analysis for Byblos Bank, calculates that Lebanese abroad supply Lebanon with about $1,400 per capita every year.
.
Lebanon was unable to attract significant foreign aid to help it rebuild from both the long civil war (1975–89) and the Israeli occupation of the south
(1978–2000). In addition, the delicate social balance and the near- dissolution of central government institutions during the civil war handicapped the state as it sought to capture revenues to fund the recovery effort. Thus it accumulated significant debt, which by 2001 had reached $28 billion, or nearly 150% of GDP. Unfortunately, economic performance was sluggish in 2000 and 2001 (zero growth in 2000, and estimates between 1.0-1.4% in 2001, largely attributed to slight increases in tourism, banking, industry, and construction). Unemployment is estimated at 14% for 2000 and 29% among the 15-24 year age group, with preliminary estimates of further increases in 2001. However, fortunately, many Lebanese expatriates have been able to return to the country due to the negative financial situations they are facing abroad, due to the global economic crisis. Also, more job opportunities are attracting more Lebanese youths for a chance to return and work in Lebanon, and also a benefit for the Lebanese living in the country, graduating from universities.
The government also has maintained a firm commitment to the Lebanese pound, which has been pegged to the dollar since September 1999. In late 2000, the government substantially reduced customs duties, adopted export promotion schemes for agriculture, decreased social security fees and restrictions on investment in real estate by foreigners, and adopted an open-skies policy,with positive effects on trade in 1991. Nonetheless, the relative appreciation of the Lebanese currency has undermined competitiveness, with merchandise exports falling from 23% of GDP in 1989 to 4% in 2000.
In 2001, the government turned its focus to fiscal measures, increasing gasoline taxes, reducing expenditures, and approving a value-added-tax that became effective in February 2002. Slow money growth and dollarization
of deposits have hampered the ability of commercial banks to finance the government, leaving more of the burden to the central bank
. This monetization of the fiscal deficit has put enormous pressure on central bank reserves, mitigated only slightly with the issuance of new Eurobond
s over the past 2 years. The central bank has maintained a stable currency by intervening directly in the market, as well as low inflation, and succeeded in maintaining investors' confidence in debt. It has done so at a cost, however, as international reserves declined by $2.4 billion in 2000 and by $1.6 billion in the first half of 2001.
For 2002, the government has put primary emphasis on privatization, initially in the telecom sector and electricity, with continued planning for sales of the state airline, Beirut port, and water utilities. The government has pledged to apply the proceeds of sales to reducing the public debt and the budget deficit. In addition, it projects that privatization will bring new savings as government payrolls are pared, interest rates decline, and private sector growth and foreign investment are stimulated. The government also is tackling the daunting task of administrative reform, aiming to bring in qualified technocrats to address ambitious economic programs, and reviewing further savings that can be realized through reforms of the income tax system. The Lebanese Government faces major challenges in order to meet the requirements of a fiscal adjustment
program focusing on tax reforms and modernization, expenditure rationalization, privatization, and improved debt management.
The U.S. enjoys a strong exporter position with Lebanon, generally ranking as Lebanon's fourth-largest source of imported goods. More than 160 offices representing U.S. businesses currently operate in Lebanon. Since the lifting of the passport restriction in 1997 (see below), a number of large U.S. companies have opened branches or regional offices, including Microsoft
, American Airlines
, Coca-Cola
, FedEx
, UPS
, General Electric
, Parsons Brinckerhoff
, Cisco Systems
, Eli Lilly
, Computer Associates and Pepsi Cola. Mexico has also many enterprises run by ethnic Lebanese, such as Carlos Slim's Telmex
.
Solidere shares are the most actively traded in the Beirut Stock Exchange. Its share price in the Beirut Stock Exchange
has risen sharply in the last year from around US$5.00 in early 2004 to close at US$ 17.50 on Friday, 23 December 2005.
Given the frequent security turmoil it has faced, the Lebanese banking system has adopted a conservative approach, with strict regulations imposed by the central bank to protect the economy from political instability. These regulations have generally left Lebanese banks unscathed by the Financial crisis of 2007–2010. Lebanese banks remain, under the current circumstances, high on liquidity and reputed for their security. In late 2008, Moody's
shifted Lebanon's sovereign rankings from stable to positive, acknowledging its financial security. Moreover, with an increase of 51% in the Beirut stock market
, the index provider MSCI ranked Lebanon the world's best performer in 2008. Lebanon is one of the only seven countries in the world in which the value of the stock market increased in 2008. The Lebanese economy experienced continued resilience, growing 8.5 percent in 2008 and seven percent in 2009. According to a report by the World Bank
, GDP growth in 2010 should remain steady at seven percent. The report cited multiple factors for Lebanon's recent and predicted growth: less-than-expected declines in exports, steady remittances, increased foreign investment, strong domestic demand, booming tourism, and a thriving financial sector. Since Lebanon enjoyed solid economic performance despite a global recession, The World Bank expects continued growth as the global economy improves in 2010. As in 2011 Report for the World Bank
it was estimated for Lebanon to face a recession in the economic growth due to the massive crises in the Arab Economy due to the Arab Spring
revolution where the revolution in Syria affects Lebanon after it was estimated for a growth at 6% for this year it dropped down to 1.5% since Syria's location and position affects Lebanon greatly on many sectors.
The increase in wages was welcomed by most Lebanese but it also sparked criticism by many some workers unions, saying that the increases weren't up to expectations especially that employees earning more that 1200$ were not entitled to raises. Others criticized the raises all together citing that it would burden small business that might end up closing altogether, those critics were mainly opposition politicians.
As of 2011 World Bank
Analysis of Quality Life Index it was estimated that :
Lebanon
Lebanon , officially the Republic of LebanonRepublic of Lebanon is the most common term used by Lebanese government agencies. The term Lebanese Republic, a literal translation of the official Arabic and French names that is not used in today's world. Arabic is the most common language spoken among...
ranked 33rd in the Human Poverty Index. The IMF forecast a growth of 7% for Lebanon's real GDP in 2010 and 2011 following 9% growth in 2009 and 8.5% in 2008.http://www.bi-me.com/main.php?id=43642&t=1&c=34&cg=4&mset=1011
History
The 1975-90 Lebanese civil warLebanese Civil War
The Lebanese Civil War was a multifaceted civil war in Lebanon. The war lasted from 1975 to 1990 and resulted in an estimated 150,000 to 230,000 civilian fatalities. Another one million people were wounded, and today approximately 350,000 people remain displaced. There was also a mass exodus of...
seriously damaged Lebanon
Lebanon
Lebanon , officially the Republic of LebanonRepublic of Lebanon is the most common term used by Lebanese government agencies. The term Lebanese Republic, a literal translation of the official Arabic and French names that is not used in today's world. Arabic is the most common language spoken among...
's economic infrastructure
Infrastructure
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function...
, cut national output by half, and had major consequences for Lebanon's position as a Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
ern entrepot
Entrepôt
An entrepôt is a trading post where merchandise can be imported and exported without paying import duties, often at a profit. This profit is possible because of trade conditions, for example, the reluctance of ships to travel the entire length of a long trading route, and selling to the entrepôt...
and bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
ing hub. After the war, the central government regained its ability to collect taxes and control over key port and government facilities. As a result, GDP per capita expanded 353% in the 1990s.
Economic recovery has been helped by a financially sound banking system and resilient small- and medium-scale manufacturers, with family remittances, banking services, manufactured and farm exports, and international aid as the main sources of foreign exchange. Lebanon's economy has made impressive gains since the launch of "Horizon 2000," the government's $20 billion reconstruction program in 1993. Real GDP
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
grew 8% in 1994 and 7% in 1995 before Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
's Operation Grapes of Wrath
Operation Grapes of Wrath
Operation Grapes of Wrath is the Israeli Defense Forces code-name for a sixteen-day campaign against Lebanon in 1996 in an attempt to end shelling of Northern Israel by Hezbollah. Israel conducted more than 1,100 air raids and extensive shelling...
in April 1996 stunted economic activity. Real GDP grew at an average annual rate of less than 3% per year for 1997 and 1998 and only 1% in 1999. During 1992-98, annual inflation fell from more than 100% to 5%, and foreign exchange reserves
Foreign exchange reserves
Foreign-exchange reserves in a strict sense are 'only' the foreign currency deposits and bonds held by central banks and monetary authorities. However, the term in popular usage commonly includes foreign exchange and gold, Special Drawing Rights and International Monetary Fund reserve positions...
jumped to more than $6 billion from $1.4 billion. Burgeoning capital inflows have generated foreign payments surpluses, and the Lebanese pound has remained relatively stable. Progress also has been made in rebuilding Lebanon's war-torn physical and financial infrastructure. Solidere
Solidere
Solidere s.a.l. is a Lebanese joint-stock company in charge of planning and redeveloping Beirut Central District following the conclusion, in 1990, of the country’s devastating civil war...
, a $2-billion firm, is managing the reconstruction of Beirut's central business district
Beirut Central District
The Beirut Central District or Centre Ville is the name given to Beirut’s historical and geographical core, the “vibrant financial, commercial, and administrative hub of the country.” At the heart of Lebanon’s capital, Beirut Central District is an area thousands of years old, traditionally a...
; the stock market
Beirut Stock Exchange
The Beirut Stock Exchange is the principal stock exchange of Lebanon. Located in Beirut, it is a public institution run by a committee including a Chairman, a Vice-Chairman and eight members appointed via a decree issued by the Council of Ministers, in accordance with a proposal by the Minister of...
reopened in January 1996, and international banks and insurance companies are returning. The government nonetheless faces serious challenges in the economic arena. It has had to fund reconstruction by tapping foreign exchange reserves and boosting borrowing. Reducing the government budget deficit is a major goal of the current government. The gap between rich and poor has widened in the 1990s, resulting in grassroots dissatisfaction over the skewed distribution of the reconstruction's benefits and leading the government to shift its focus from rebuilding infrastructure to improving living conditions.
Macro-economic trend
This is a chart of trend of gross domestic product of Lebanon at market prices estimated by the International Monetary Fund with figures in millions of Lebanese Pounds.| Year | Gross Domestic Product | US Dollar Exchange | Inflation Index (2000=100) |
|---|---|---|---|
| 1980 | 14,000 | 3.43 Lebanese Pounds | 0.071 |
| 1985 | 59,329 | 16.41 Lebanese Pounds | 0.21 |
| 1990 | 1,973,000 | 695.20 Lebanese Pounds | 18 |
| 1995 | 18,027,607,000 | 1,621.33 Lebanese Pounds | 81 |
| 2000 | 25,143,000,000 | 1,507.46 Lebanese Pounds | 100 |
| 2005 | 33,243,000,000 | 1,507.48 Lebanese Pounds | 105 |
| 2007 | 37,243,000,000 | 1,507.48 Lebanese Pounds | 103 |
| 2009 | 39,243,000,000 | 1,507.48 Lebanese Pounds | 101 |
| 2011 | 43,243,000,000 | 1,507.48 Lebanese Pounds | 99 |
For purchasing power parity comparisons, the US Dollar is exchanged at 1,403.29 Lebanese Pounds only. Mean wages were $8.95 per manhour in 2009.
Opportunity Cost of Conflict
A report by Strategic Foresight GroupStrategic Foresight Group
Strategic Foresight Group is a think tank based in India that works on issues of global importance and relevance. It was established in 2002 to create new forms of intellectual capital. It identifies emerging trends across sectors at regional and global levels and enables policy-makers to respond...
has calculated the opportunity cost of conflict
Cost of conflict
Cost of Conflict is a tool which attempts to calculate the price of conflict to the human race. The idea is to examine this cost, not only in terms of the deaths and casualties and the economic costs borne by the people involved, but also the social, developmental, environmental and strategic costs...
for the Middle East from 1991-2010 at a whopping $12 trillion. Had there been peace in the region, Lebanon’s share during this period would be almost a $100 billion (according to 2006 prices). In other words, had there been peace and cooperation since 1991, every Lebanese citizen would be earning over $11,000 instead of the $5,600 in 2010.
External trade
Free market
A free market is a competitive market where prices are determined by supply and demand. However, the term is also commonly used for markets in which economic intervention and regulation by the state is limited to tax collection, and enforcement of private ownership and contracts...
regime and a strong laissez-faire
Laissez-faire
In economics, laissez-faire describes an environment in which transactions between private parties are free from state intervention, including restrictive regulations, taxes, tariffs and enforced monopolies....
commercial tradition. The Lebanese economy is service-oriented; main growth sectors include banking and tourism. There are no restrictions on foreign exchange or capital movement, and bank secrecy
Bank secrecy
Bank secrecy is a legal principle in some jurisdictions under which banks are not allowed to provide to authorities personal and account information about their customers unless certain conditions apply...
is strictly enforced. Lebanon has recently adopted a law to combat money laundering
Money laundering
Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
. There are practically no restrictions on foreign investment. There are no country-specific U.S. trade sanctions against Lebanon.
Remittances
Lebanon benefits from its large, cohesive, and entrepreneurial diaspora. Over the course of time, emigration has yielded Lebanese "commercial networks" throughout the world. As a result, remittancesRemittances
A remittance is a transfer of money by a foreign worker to his or her home country. Note that in 19th century usage a remittance man was someone exiled overseas and sent an allowance on condition that he not return home....
from Lebanese abroad to family members within the country total $8.2 billion and account for one fifth of the country's economy. Nassib Ghobril, the head of research and analysis for Byblos Bank, calculates that Lebanese abroad supply Lebanon with about $1,400 per capita every year.
Investment
The stock market capitalisation of listed companies in Lebanon was valued at $10.858 billion in 2007 by the World BankWorld Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
.
Lebanon was unable to attract significant foreign aid to help it rebuild from both the long civil war (1975–89) and the Israeli occupation of the south
1982 Lebanon War
The 1982 Lebanon War , , called Operation Peace for Galilee by Israel, and later known in Israel as the Lebanon War and First Lebanon War, began on 6 June 1982, when the Israel Defense Forces invaded southern Lebanon...
(1978–2000). In addition, the delicate social balance and the near- dissolution of central government institutions during the civil war handicapped the state as it sought to capture revenues to fund the recovery effort. Thus it accumulated significant debt, which by 2001 had reached $28 billion, or nearly 150% of GDP. Unfortunately, economic performance was sluggish in 2000 and 2001 (zero growth in 2000, and estimates between 1.0-1.4% in 2001, largely attributed to slight increases in tourism, banking, industry, and construction). Unemployment is estimated at 14% for 2000 and 29% among the 15-24 year age group, with preliminary estimates of further increases in 2001. However, fortunately, many Lebanese expatriates have been able to return to the country due to the negative financial situations they are facing abroad, due to the global economic crisis. Also, more job opportunities are attracting more Lebanese youths for a chance to return and work in Lebanon, and also a benefit for the Lebanese living in the country, graduating from universities.
Reforms
Lebanon's current program of reforms focuses on three main pillars:- Economic revival and sustainable growth, with the private sector as the engine of growth;
- Fiscal consolidation and structural improvement in public sector finances; and
- Monetary, financial, and price stability.
The government also has maintained a firm commitment to the Lebanese pound, which has been pegged to the dollar since September 1999. In late 2000, the government substantially reduced customs duties, adopted export promotion schemes for agriculture, decreased social security fees and restrictions on investment in real estate by foreigners, and adopted an open-skies policy,with positive effects on trade in 1991. Nonetheless, the relative appreciation of the Lebanese currency has undermined competitiveness, with merchandise exports falling from 23% of GDP in 1989 to 4% in 2000.
In 2001, the government turned its focus to fiscal measures, increasing gasoline taxes, reducing expenditures, and approving a value-added-tax that became effective in February 2002. Slow money growth and dollarization
Dollarization
Dollarization occurs when the inhabitants of a country use foreign currency in parallel to or instead of the domestic currency. The term is not only applied to usage of the United States dollar, but generally to the use of any foreign currency as the national currency.The biggest economies to have...
of deposits have hampered the ability of commercial banks to finance the government, leaving more of the burden to the central bank
Banque du Liban
Banque du Liban is the central bank of Lebanon. It was established on August 1, 1963 and became fully operational on April 1, 1964. It is currently headed by Riad Salameh, who was named the Middle East's best central bank governor by Euromoney in 2005....
. This monetization of the fiscal deficit has put enormous pressure on central bank reserves, mitigated only slightly with the issuance of new Eurobond
Eurobond
A Eurobond is an international bond that is denominated in a currency not native to the country where it is issued. It can be categorised according to the currency in which it is issued. London is one of the centers of the Eurobond market, but Eurobonds may be traded throughout the world - for...
s over the past 2 years. The central bank has maintained a stable currency by intervening directly in the market, as well as low inflation, and succeeded in maintaining investors' confidence in debt. It has done so at a cost, however, as international reserves declined by $2.4 billion in 2000 and by $1.6 billion in the first half of 2001.
For 2002, the government has put primary emphasis on privatization, initially in the telecom sector and electricity, with continued planning for sales of the state airline, Beirut port, and water utilities. The government has pledged to apply the proceeds of sales to reducing the public debt and the budget deficit. In addition, it projects that privatization will bring new savings as government payrolls are pared, interest rates decline, and private sector growth and foreign investment are stimulated. The government also is tackling the daunting task of administrative reform, aiming to bring in qualified technocrats to address ambitious economic programs, and reviewing further savings that can be realized through reforms of the income tax system. The Lebanese Government faces major challenges in order to meet the requirements of a fiscal adjustment
Fiscal adjustment
A fiscal adjustment is a reduction in the government primary budget deficit, and it can result from a reduction in government expenditures, an increase in tax revenues, or both simultaneously....
program focusing on tax reforms and modernization, expenditure rationalization, privatization, and improved debt management.
The U.S. enjoys a strong exporter position with Lebanon, generally ranking as Lebanon's fourth-largest source of imported goods. More than 160 offices representing U.S. businesses currently operate in Lebanon. Since the lifting of the passport restriction in 1997 (see below), a number of large U.S. companies have opened branches or regional offices, including Microsoft
Microsoft
Microsoft Corporation is an American public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions...
, American Airlines
American Airlines
American Airlines, Inc. is the world's fourth-largest airline in passenger miles transported and operating revenues. American Airlines is a subsidiary of the AMR Corporation and is headquartered in Fort Worth, Texas adjacent to its largest hub at Dallas/Fort Worth International Airport...
, Coca-Cola
Coca-Cola
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke...
, FedEx
FedEx
FedEx Corporation , originally known as FDX Corporation, is a logistics services company, based in the United States with headquarters in Memphis, Tennessee...
, UPS
United Parcel Service
United Parcel Service, Inc. , typically referred to by the acronym UPS, is a package delivery company. Headquartered in Sandy Springs, Georgia, United States, UPS delivers more than 15 million packages a day to 6.1 million customers in more than 220 countries and territories around the...
, General Electric
General Electric
General Electric Company , or GE, is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States...
, Parsons Brinckerhoff
Parsons Brinckerhoff
Parsons Brinckerhoff is a professional services firm with 14,000 employees in 150 offices providing construction and operation management, planning, design, engineering, program management, strategic consulting, environmental and sustainability services for clients and communities in the Americas,...
, Cisco Systems
Cisco Systems
Cisco Systems, Inc. is an American multinational corporation headquartered in San Jose, California, United States, that designs and sells consumer electronics, networking, voice, and communications technology and services. Cisco has more than 70,000 employees and annual revenue of US$...
, Eli Lilly
Eli Lilly and Company
Eli Lilly and Company is a global pharmaceutical company. Eli Lilly's global headquarters is located in Indianapolis, Indiana, in the United States...
, Computer Associates and Pepsi Cola. Mexico has also many enterprises run by ethnic Lebanese, such as Carlos Slim's Telmex
Telmex
Telmex is a telecommunications company headquartered in Mexico City that provides telecommunication products and services in Mexico, Argentina, Colombia, Brazil and other countries in Latin America. In addition to traditional fixed-line telephone service, Telmex also offers Internet access, data,...
.
Solidere shares are the most actively traded in the Beirut Stock Exchange. Its share price in the Beirut Stock Exchange
Beirut Stock Exchange
The Beirut Stock Exchange is the principal stock exchange of Lebanon. Located in Beirut, it is a public institution run by a committee including a Chairman, a Vice-Chairman and eight members appointed via a decree issued by the Council of Ministers, in accordance with a proposal by the Minister of...
has risen sharply in the last year from around US$5.00 in early 2004 to close at US$ 17.50 on Friday, 23 December 2005.
Economic growth
Moody's
Moody's Corporation is the holding company for Moody's Analytics and Moody's Investors Service, a credit rating agency which performs international financial research and analysis on commercial and government entities. The company also ranks the credit-worthiness of borrowers using a standardized...
shifted Lebanon's sovereign rankings from stable to positive, acknowledging its financial security. Moreover, with an increase of 51% in the Beirut stock market
Beirut Stock Exchange
The Beirut Stock Exchange is the principal stock exchange of Lebanon. Located in Beirut, it is a public institution run by a committee including a Chairman, a Vice-Chairman and eight members appointed via a decree issued by the Council of Ministers, in accordance with a proposal by the Minister of...
, the index provider MSCI ranked Lebanon the world's best performer in 2008. Lebanon is one of the only seven countries in the world in which the value of the stock market increased in 2008. The Lebanese economy experienced continued resilience, growing 8.5 percent in 2008 and seven percent in 2009. According to a report by the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
, GDP growth in 2010 should remain steady at seven percent. The report cited multiple factors for Lebanon's recent and predicted growth: less-than-expected declines in exports, steady remittances, increased foreign investment, strong domestic demand, booming tourism, and a thriving financial sector. Since Lebanon enjoyed solid economic performance despite a global recession, The World Bank expects continued growth as the global economy improves in 2010. As in 2011 Report for the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
it was estimated for Lebanon to face a recession in the economic growth due to the massive crises in the Arab Economy due to the Arab Spring
Arab Spring
The Arab Spring , otherwise known as the Arab Awakening, is a revolutionary wave of demonstrations and protests occurring in the Arab world that began on Saturday, 18 December 2010...
revolution where the revolution in Syria affects Lebanon after it was estimated for a growth at 6% for this year it dropped down to 1.5% since Syria's location and position affects Lebanon greatly on many sectors.
Salaries of Lebanon
On the 15th of October 2011, and after various unions, including the teachers unions, the general workers union and others threatened to strike The minimal wage was increased by 40% (200,000 L.P- 133$) to 700,000L.P (466$) most unions went ahead with the strike except the general workers union .- Wages between minimal wage and 1,200,000L.P (800) were increased by 200,000 (133$) to become 700,000L.P (minimal wage) and 1,400,000 (933$) respectively .
- Wages more than 1,200,000 L.P up to 1,700,000L.P (1133$) were increased by 300,000L.P ( 200$) to become 1,500,000L.P (1000$) and 2,000,000L.P (1333$).
- Wages above 1,800,000L.P (1200$) were not increased.
The increase in wages was welcomed by most Lebanese but it also sparked criticism by many some workers unions, saying that the increases weren't up to expectations especially that employees earning more that 1200$ were not entitled to raises. Others criticized the raises all together citing that it would burden small business that might end up closing altogether, those critics were mainly opposition politicians.
As of 2011 World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
Analysis of Quality Life Index it was estimated that :
- - 20% of the Lebanese People lives below Poverty line (2,500$) annually. 8% from 1998
- - 54% of the Lebanese People lives in the moderate middle class (9,000$) annually. 12% from 1998
- - 22% of the Lebanese People lives in the upper middle class (15,000 $ - 27,000$) annually. 19% from 1998
- - 4% of the Lebanese People lives in the highest Upper Class richRichRich may refer to wealth. Rich may also refer to:- Organizations :* B.C. Rich, guitar manufacturer* Rich Products, international food products corporation* Rich's, U.S. department store retail chain in the southern U.S....
(30,000$ and above) annually 1% from 1998