Economy of Lebanon

The economy of Lebanon has been experiencing a large-scale multi-dimensional crisis since 2019, including a banking collapse, a liquidity crisis and a sovereign default. It is classified as a developing, lower-middle-income economy. The nominal GDP was estimated at

19 billion in 2020, with a per capita GDP amounting to

2,500. In 2018 government spending amounted to

15.9 billion, or 23% of GDP. The economy significantly expanded after the 2006 Lebanon War, with growth averaging 9.1% between 2007 and 2010. 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. In 2018, the size of the GDP was estimated to be

54.1 billion. 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. 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. History of Lebanon The 1965–1990 Lebanese Civil War seriously damaged Lebanon's economic infrastructure, cut national output by half, and had major consequences for Lebanon's position as a Middle Eastern entrepot and banking hub. After the war, the central government regained its ability to collect taxes and control 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.

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Related concepts (3)

History of Lebanon

The history of Lebanon covers the history of the modern Republic of Lebanon and the earlier emergence of Greater Lebanon under the French Mandate for Syria and the Lebanon, as well as the previous history of the region, covered by the modern state. The modern State of Lebanon has existed within its current borders since 1920, when Greater Lebanon was created under French and British mandate, resulting from the dismemberment of the Ottoman Empire at the end of World War I.

Economy of Lebanon

19 billion in 2020, with a per capita GDP amounting to

2,500. In 2018 government spending amounted to $15.9 billion, or 23% of GDP. The economy significantly expanded after the 2006 Lebanon War, with growth averaging 9.1% between 2007 and 2010.

Lebanon

Lebanon (ˈlɛbənɒn,_-nən ; لُبْنَان, lɪbˈneːn; Liban), officially the Republic of Lebanon (الجمهورية اللبنانية) is a Mediterranean country in the Levant Region in West Asia, located between Syria to the north and east and Israel to the south. Cyprus lies to its west across the Mediterranean Sea; its location at the crossroads of the Mediterranean Basin and the Arabian hinterland has contributed to its rich history and shaped a cultural identity of religious diversity. It is part of the Levant region of the Near East.