Economy of Lebanon

Economy of Lebanon
Beirut Central District
CurrencyLebanese Lira (LBL)
Calendar
Trade organisations
CAEU
Country group
Statistics
Population6,825,232 (20 April 2020)[3]
GDP
  • Decrease $7.36 billion (nominal; 2021 est.) at official Cash withdrawal ratio 1500/3900[4]
  • Decrease $74.110 billion (PPP; 2020 est.)[5]
GDP per capita
  • Decrease $4,000 (nominal, 2020.)[4]
  • Decrease $20,429 (PPP, 2020.)[4]
[6]
GDP by sector
210% (2022 est.)[8]
Population below poverty line
  • 27.4% (2012)[9]
  • 63% on less than $5.50/day (2011)[10]
31.8 medium (2011)[11]
Labour force
  • Increase 2,399,073 (2019)[14]
  • in addition, there are as many as 1 million foreign workers[7]
  • 39.5% employment rate (2007)[15]
Labour force by occupation
Unemployment6.2% (2019)[17]
Main industries
banking, tourism, real estate and construction, food processing, wine, jewelry, cement, textiles, mineral and chemical products, wood and furniture products, oil refining, metal fabricating
External
ExportsDecrease $4.79 billion (2021)[18]
Export goods
jewelry, base metals, chemicals, consumer goods, fruit and vegetables, tobacco, construction minerals, electric power machinery and switchgear, textile fibers, paper
Main export partners
ImportsDecrease $16.3 billion (2021)[18]
Import goods
petroleum products, cars, medicinal products, clothing, meat and live animals, consumer goods, paper, textile fabrics, tobacco, electrical machinery and equipment, chemicals
Main import partners
FDI stock
  • Increase $61.02 billion (2016)[7]
  • Increase Abroad: $13.46 billion (2016)[7]
Decrease −$12.37 billion (2017 est.)[7]
Negative increase $33.1 billion (December 2018)[19]
Public finances
US$74.5 billion[20][21] (Sep 2018),
140% of GDP (2018)
−6.9% (of GDP) (2017 est.)[7]
Revenues11.62 billion (2017 est.)[7]
Expenses15.38 billion (2017 est.)[7]
Economic aidrecipient $5.4 billion (2014 est.)
Decrease $55.42 billion (31 December 2017 est.)[7]
All values, unless otherwise stated, are in US dollars.

The economy of Lebanon has been experiencing a large-scale multi-dimensional crisis since 2019,[25] including a banking collapse, the Lebanese liquidity crisis and a sovereign default.[26] It is classified as a developing, lower-middle-income economy. The nominal GDP was estimated at $19 billion in 2020,[4] with a per capita GDP amounting to $2,500. In 2018 government spending amounted to $15.9 billion,[27] or 83% of GDP.

The Lebanese economy went through a significant expansion after the 34-day war of 2006, with growth averaging 9.1% between 2007 and 2010.[28] After 2011 the local economy was affected by the Syrian civil war, growing by a yearly average of 1.7% on the 2011–2016 period and by 1.5% in 2017.[28] In 2018, the size of the GDP was estimated to be $54.1 billion.[29] Between 2019 and 2021, the economy shrank by 53.4%, the highest contraction in a list of 193 countries.[30] Since 2020, the International Monetary Fund no longer publish data on the Lebanese economy.

Lebanon is the third-highest indebted country in the world in terms of debt-to-GDP ratio. As a consequence, interest payments consumed 48% of domestic government revenues in 2016, thus limiting the government's ability to make needed investments in infrastructure and other public goods.[31]

The Lebanese economy is service-oriented. Lebanon has a strong tradition of laissez-faire, with the country's constitution stating that "the economic system is free and ensures private initiative and the right to private property". The major economic sectors include metal products, banking, agriculture, chemicals, and transport equipment. The main growth sectors include banking and tourism. There are no restrictions on foreign exchange or capital movement.[32]

  1. ^ "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. Retrieved 29 September 2019.
  2. ^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 29 September 2019.
  3. ^ "Lebanon Population 2020 (Demographics, Maps, Graphs)". worldpopulationreview.com.
  4. ^ a b c d "World Economic Outlook Database, April 2021". IMF.org. International Monetary Fund. Retrieved 1 April 2021.
  5. ^ "World Economic Outlook(april 2021)". imf.org.
  6. ^ "GDP per capita (current US$) - Lebanon | Data".
  7. ^ a b c d e f g h i "Middle East :: Lebanon – The World Factbook". Central Intelligence Agency. Retrieved 6 February 2019.
  8. ^ "World Economic Outlook Database, April 2020". IMF.org. International Monetary Fund. Retrieved 28 April 2020.
  9. ^ "Poverty headcount ratio at national poverty lines (% of population) – Lebanon". data.worldbank.org. World Bank. Retrieved 19 October 2019.
  10. ^ "Poverty headcount ratio at $5.50 a day (2011 PPP) (% of population) – Lebanon". data.worldbank.org. World Bank. Retrieved 19 October 2019.
  11. ^ "GINI index (World Bank estimate) – Lebanon". data.worldbank.org. World Bank. Retrieved 19 October 2019.
  12. ^ "Human Development Index (HDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 17 November 2022.
  13. ^ "Inequality-adjusted Human Development Index (IHDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 17 November 2022.
  14. ^ "Labor force, total – Lebanon". data.worldbank.org. World Bank. Retrieved 25 December 2019.
  15. ^ "Employment to population ratio, 15+, total (%) (national estimate) – Lebanon". data.worldbank.org. World Bank. Retrieved 25 December 2019.
  16. ^ "Lebanon – employment by economic sector in 2009–2019". Statista.
  17. ^ "Lebanon – unemployment rate 1999–2019". Statista.
  18. ^ a b c d "Foreign trade partners of Lebanon". The Observatory of Economic Complexity. Retrieved 19 June 2021.
  19. ^ "Lebanon External Debt [2002 – 2020] [Data & Charts]". www.ceicdata.com.
  20. ^ "public debt net total debt". banque du liban. Archived from the original on 9 November 2019. Retrieved 23 January 2019.
  21. ^ Ministry of Finance: Debt Reports: http://www.finance.gov.lb/en-US/finance/PublicDebt/Pages/DebtReports.aspx Archived 8 August 2017 at the Wayback Machine
  22. ^ "Standard & Poor's: Lebanon". Retrieved 9 March 2019.
  23. ^ "Rating Action: Moody's downgrades Lebanon's rating to C from Ca". Moody's. 27 July 2020.
  24. ^ "Fitch Downgrades Lebanon to 'CCC'". Fitch.
  25. ^ "Lebanon Sinking into One of the Most Severe Global Crises Episodes, amidst Deliberate Inaction". World Bank. Retrieved 22 November 2021.
  26. ^ Stubbington, Tommy; Cornish, Chloe (10 March 2020). "Lebanon's sovereign default leaves creditors facing big losses". Financial Times. Archived from the original on 10 December 2022. Retrieved 22 November 2021.
  27. ^ "Lebanon's cabinet agrees 2018 budget with lower deficit". Reuters. Retrieved 17 February 2019.
  28. ^ a b "GDP growth(annual %)". Worldbank. Archived from the original on 26 January 2019. Retrieved 29 January 2019.
  29. ^ "Lebanon". The World Factbook. Central Intelligence Agency. Retrieved 6 May 2018.
  30. ^ "Lebanon Economic Monitor, Fall 2021: The Great Denial". World Bank. Retrieved 11 April 2023.
  31. ^ Barrington, Lisa (30 August 2017). "Lebanon embarks on long-delayed reforms but debt problems mount". Reuters. Retrieved 14 October 2017.
  32. ^ "Lebanon - Foreign Exchange Controls | Privacy Shield". www.privacyshield.gov. Retrieved 9 July 2024.