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Lebanon Lebanon

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Lebanon

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EconomicPoliticalStructural

Lebanon – Quick View
ECR score43.53 (Mar 2011)
ECR rank91 (Mar 2011)
Economic
GDP (2010E)USD 4.37 billion
GNI per capita PPP (2010E)USD 13,475
FDI inflow (2009)USD 4.08 billion
Inflation (Nov. 2010)0.4%
Central bank assets (Feb. 2011)USD 327.59 million
Unemployment rate12-14%
Government deficit (2010)USD 2.0 billion
Tax revenue (2009)USD 5.88 billion
Political
Government typeUnicameral and Republican
Recent political crisisNA
Economic freedom score (2011)89th
Freedom of information score (2010)78th
Corruption perception index (2010)127th
Structural
Birth rate (2005-2010E)15.8 per ‘000
Population balance (2009)Under 14 years - 25%
Population balance (2009)Over 64 years - 7%
Life expectancy years (2010)Males - 71 years
Life expectancy years (2010)Females - 75 years
Mortality rate (2005-2010E)6.9 per ‘000
Literacy rate (2010)89.6%
Internet access (2010)24.2%

[Top] Economic Overview

Lebanon has a liberal and open economy. The private  and banking sectors contribute approximately 75% towards aggregate demand, followed by tourism and industry.

(Source: lebanonembassyus)

GDP in recent years has grown steadily, despite fluctuations in growth. In 2006, the growth rate was 0.6% and increased in 2008 to reach a high of 9.3%.

(Source: econstats, econstats)

Lebanon GDP and GDP growth

E=Estimated

(Source: econstats, econstats)

GDP per capita at PPP

 

The GDP per capita at PPP was USD 15,330.96 in 2010, an increase of 7.45% compared to USD 14,267.87 in 2009.

Lebanon GDP per capita PPP

E=Estimated

(Source: econstats)

 

GNI per capita at PPP

 

The GNI per capita at PPP increased at a growth rate of 4.03% from USD 9,440 in 2000 to USD 13,475 in 2010.

 

Lebanon GNI per capita at PPP

(Source: undp)

 

Income tax rate

 

Income tax on individual incomes in Lebanon varies from 2% to 20%.

 

Tax rate for individuals (LBP)

Tax (%)

1 to 6,000,000

2

6,000,001 to 15,000,000

4

15,000,001 to 30,000,000

7

30,000,001 to 60,000,000

11

60,000,001 to120,000,000

15

More than 120,000,001

20

 

(Source: taxrates)

 

Corporate tax

 

Standard corporate tax in Lebanon is 15% and VAT levied across the country is 10%.

 

(Source: taxrates)

 

Inflation rate

 

The inflation rate in Lebanon fluctuates varying from 4.7% in April 2010 and -1.1% in January 2010.

 

Lebanon Inflation

(Source: CAS)

 

FDI Inflow

 

Between 2005 to 2008, FDI inflow increased from USD 2.62 billion to USD 4.33 billion. In 2009, FDI decreased to USD 4.08 billion.

 

Lebanon FDI net inflows

(Source: worldbank)

 

Banking sector assets

 

The assets of Central bank of Lebanon are:

 

Assets of Central Bank of Lebanon (LBP million)

 

Feb 2011

Dec 2010

Dec 2009

Gold

19,613.20

19,612.51

15,168.52

Foreign Assets

45,663.73

46,134.62

42,656.92

Securities Portfolio

15,688.85

14,487.90

11,549.30

Loans to Public Sector

205.47

218.13

291.87

Loans to local financial sector

1,406.81

1,136.30

1,802.80

Valuation Adjustment

0

0

0

Other Assets

13,050.75

12,387.41

9,146.57

Fixed Assets

401,587.89

403.92

410.64

 

(Source: bdl)

[Top] Financial Indicators & Government Financial

Consumer price index (CPI)

 

The CPI in 2010, increased from 107.9 in January 2010 to 113.5 in November 2010, declining slightly in January 2010 and June 2010.

 

Lebanon Consumer Price Index

Base: Dec 2007 = 100

 

(Source: CAS)

 

Interest rate

 

Interest rates, 2010 (%)

Month

Average Rate on Deposits

Interbank Rate

Discount and Loans

Term Savings and Deposits

January

6.61

3

8.91

6.87

February

6.42

3

8.83

6.7

March

6.11

2.75

8.69

6.36

April

6

2.75

8.48

6.25

May

5.93

3

8.47

6.2

June

5.83

2.75

8.37

6.1

July

5.79

2.75

8.09

6.04

August

5.72

2.75

8.05

5.99

September

5.7

2.75

8.11

5.96

October

5.72

2.75

8.15

5.98

November

5.68

2.75

7.98

5.95

December

5.68

2.75

7.91

5.97

 

(Source: bdl, bdl, bdl, bdl)

 

Money Supply

 

Money Supply

 

Dec 2010

Dec 2009

M1

5728.339

4839.666

Currency in Circulation

2712.904

2383.046

M2

59401.86

51489.41

M3

138909.8

123731.6

M4

146820.8

131084.6

 

Lebanon has four measures of its monetary stock - M1, M2, M3 and M4 where

 

M1 includes:

·         Currency in circulation

·         Sight deposits in LBP

 

M2 includes M1 and:

·         Other deposits in LBP

 

M3 includes M2 and:

·         Deposits in foreign currencies

·         Other financial liabilities

 

M4 includes M3 and:

·         Treasury bills held by non-banking system

 

(Source: bdl)

 

Government expenditure

 

In 2009, Government expenditure increased by 14.78% over 2008.

 

Lebanon Expenditure

(Source: CAS)

 

Public debt

 

Lebanon's public debt increased between 2005 and 2010. Total debt in 2010 was LBP 67,722 billion, an increase of 1.72% over 2009.

Lebanon Net total debt

(Source: bdl)

Official exchange rate

The official exchange rate of the LBP against the USD was at a steady rate of 1507.5 between 2005 and 2010. Lebanon Exchange rate

(Source: bdl)

Government finances

 

Fiscal balance

Lebanon's fiscal balance was running a deficit between 2008 and 2010, registering the highest deficit of LBP 3,351 billion in 2009.

Lebanon Fiscal balance

(Source: finance.gov.lb)

Total revenue

Lebanon's total revenue was on a steady rise between 2005 and 2009, decreasing only slightly in 2006.

Lebanon Total revenue

(Source: CAS)

Tax revenue

Tax revenues increased between 2007 and 2009. Lebanon's tax revenue reached a maximum level in 2009 with LBP 8,967 billion.

Lebanon Tax revenue

(Source: CAS)

Current account balance

Lebanon's current account balance was in deficit of LBP 7,519 billion in 2009. The deficit has been increasing at a rate of 89.41% since 2006.

Lebanon Current account balance

(Source: bdl)

Balance of payments

Balance of payments (LBP billion)

Particular

2009

2008

Current account

-7518.8

-4,102.7

Capital and Financial account

9,769.0

5,873.5

Net Errors and Omissions

-2,250

-1,770.8

(Source: bdlpage: 46)

[Top] Labour Force and Employment Overview

Labour force participation rate

 

In 2008, the labour force participation rate for males among the age group between 15-64 years was 76.9% and  24.8% for females of the same age group.

 

(Source: UN)

 

Unemployment rate

The total unemployment rate in Lebanon falls between the range of 12 to 14%. The youth-unemployment rate in Lebanon is 21%.

(Source: economist, dailystar)

[Top] Political Stability

Government stability

 

Lebanon has a republican form of government and is unicameral. There are two main religious political parties in Lebanon- Muslim and Christian.

 

(Source: lebanese-forces.org)

 

Regulatory environment

 

Lebanon’s economic freedom score is 60.1, ranking it as 89th freest country in 2011 Index.

 

Lebanon Economic Freedom Indices

(Source: heritage.org)

 

Corruption perception

 

The Corruption Perceptions Index (CPI) is a survey to measure the perceived level of corruption across countries worldwide. Lebanon is ranked 127th on the index indicating low levels of corruption in public departments.

CPI ranking of the country moved from 130th in 2009 to 127th in 2010 with a score of 2.5 and confidence range of 1.8 to 3.0.

(Source: transparency.org, transparency.org)

Freedom of information

 

World Press Freedom Index 2010 ranks Lebanon at 78th position with a score of 20.5, indicating that media in Lebanon has few restrictions. Lebanon's press system is highly regionalised and newspapers are privately owned.

 

Major newspapers in Lebanon are:

 

·         An-Nahar

·         Al-Safir

·         Al-Anwar

·         Al-Mustaqbal

·         Al-Diyar

·         L'Orient-Le Jour

·         The Daily Star

 

(Source: BBC, rsf.org)

 

 

Judicial system

 

Lebanon's judicial system is mainly based on Civil Law, Islamic law, Ottoman legal principles and the laws of the Lebanese legislature. Lebanon has two types of courts, ordinary and exceptional courts. The ordinary courts are subdivided into criminal and civil departments. At the base of the judicial system there are the Courts of First Instance followed by the Courts of Appeal.

(Source: undp-pogar.org)

[Top] Demographic Overview

The total population of Lebanon in 2010 was estimated to be 4.3 million.

 

(Source: undp page: 183)

 

In 2009, males accounted for 49% of the total population and females accounted for 51%.

 

Lebanon Population by gender

 

(Source: worldbank)

 

In 2009, the population in Lebanon below 14 years of age accounted for 25%, whereas people in the 15-64 and 65 year age group and above made up 67% and 7% respectively.

 

(Source: worldbank, worldbank, worldbank)

 

Birth and death rate

 

Between 2005 and 2010, the crude birth rate was estimated at 15.8 per 1,000 people and the crude death rate was 6.9 per 1,000 people.

 

(Source: UN, UN)

 

Life expectancy

 

The average life expectancy at birth in Lebanon is 72.4, for males it is 71 years and for females it is 75 years.

 

(Source: BBC)

 

Ethnic environment

 

The ethnic groups in Lebanon are mainly Arab, Armenian and others. Lebanon's urban population growth rate between 2005 and 2010 was 1.2% and the rural population growth rate was 0.1%. The total population growth rate was 0.8% (per 1,000).

 

(Source: UN, state.gov)

 

Migration and urbanisation

 

In mid-2010, the international migrant stock in Lebanon was 758,200, representing 17.8% of the total population. In 2009 Lebanon’s rural population was 545,683 and the urban population was 3.67 million.

 

(Source:UN, worldbank, worldbank)

 

Human development index (HDI)

 

The country ranked 83rd out of 182 countries on the HDI 2007 conducted by the United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education).

 

(Source: undp)

[Top] Soft Infrastructure

Literacy rate

Ther literacy rate for adults in Lebanon was 89.6% in 2010.

(Source: undp)

Education resources

The education system in Lebanon includes:

·         Pre-higher education

·         Higher education system

The higher education system includes:

·         Universities

·         University institutes

·         Technical universities

·         Higher institutes/ schools.

In 2008, Lebanon had 907,211 school students and 167,165 higher education students. The numbers of female students in higher education was 91,276 and the number of male students was 75,889.

(Source: CAS page: 6)

Healthcare resources

The healthcare system in Lebanon has maintained a good standard of medical assistance. Lebanon’s health system has undergone significant changes since 2000. The private hospitals in Lebanon are mainly owned by physicians, charitable and religious organizations, and universities.

(Source:moph.gov)

[Top] Hard Infrastructure

Mass public transit

 

The main mode of public transport in Lebanon is predominantley by road (buses and cabs), ferries, railway and air travel. The roadway length in Lebanon is 6,970 km.

 

(Source:bymap.org)

 

Ports

 

There are 2 ports in Lebanon which are the Port of Beirut and the Port of Tripoli.

 

(Source:world port source)

 

Airports

 

 There are three airports in Lebanon which are as follows:

 

Town

Airport name

Runway length

Beirut

Beirut Intl

10600 ft

Kleyate

Rene Mouawad AB

9800 ft

Rayak

Rayak AB

9800 ft

 

(Source: aircraft-charter-world)

 

Telecommunications networks

 

In 2010, the total number of internet users was approximately 1 million, accounting for 24.2% of the entire population and an increase of about 5.82% over 2009.

 

Lebanon Internet penetration rate

(Source: internet world stats)

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