LEBANON

Worst financial collapse since independence in 1943

D4

HIGH RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD53bn (World ranking 86, World Bank 2019)
Population 6.8mn (World ranking 107, World Bank 2019)
Form of state Republic
Head of government Hasan DIAB (Caretaker Prime Minister)
Next elections 2022, presidential and legislative 
  • Educated workforce
  • Regional support from the GCC states (though financial support is made increasingly conditional on reforms)
  • Weak and deteriorating business environment, with a high level of perceived corruption
  • Tensions between the religious factions spill over into the political arena and into periodic outbreaks of violence
  • Regional factors, including events in Syria and Iraq and tensions arising directly and indirectly from Iranian influence
  • Large fiscal deficits and high public debt (among the highest in the world when expressed as a percentage of GDP)
  • Very large current account deficits
  • A fixed exchange rate (the LBP is pegged to the USD) prevents economic management through that mechanism
  • Relatively poor data provision

Trade structure by destination/origin

(% of total)

Exports Rank Imports
United Arab Emirates 10%
1
12% China
Saudi Arabia 10%
2
7% Italy
Syria 8%
3
6% United States
Switzerland 7%
4
6% Greece
Iraq 6%
5
6% Germany

Trade structure by product

(% of total)

Exports Rank Imports
Miscellaneous manufactured articles, n.e.s. 11%
1
17% Petroleum, petroleum products and related materials
Vegetables and fruits 10%
2
8% Road vehicles
Gold, non-monetary (excluding gold ores and concentrates) 9%
3
5% Medicinal and pharmaceutical products
Metalliferous ores and metal scrap 8%
4
4% Miscellaneous manufactured articles, n.e.s.
Power generating machinery and equipment 5%
5
4% Gold, non-monetary (excluding gold ores and concentrates)

Contact

Contact Euler Hermes

Economic Research Team

research@eulerhermes.com

Contact Manfred Stamer

Senior Economist for Emerging Europe and the Middle East

manfred.stamer@eulerhermes.com 

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