Lebanon: Fragile, but resilient

The economy is essentially service-oriented (over 60% of GDP) so is vulnerable to oscillations in regional and global developments. The impact on the Lebanese economy of events in Syria is severe.

The central bank has maintained its exchange rate policy of a fixed USD peg (LBP1,507.5:USD1) since the mid-1990s, despite considerable economic and financial volatility and political uncertainty. The fiscal deficit widened to -9.2% of GDP in 2012 from a relatively low -5.9% in 2011.