Lebanon's economy to grow 2.8% as Syria conflict takes toll

Growth rate compares with an average of 5 percent from 2000 to 2010
Lebanon's economy to grow 2.8% as Syria conflict takes toll
By Massoud A. Derhally
Thu 07 Mar 2013 05:37 PM

Lebanon's economy will grow 2.8 percent this year, as the conflict in Syria continues to take its toll, Deutsche Bank said in a report.

The growth rate compares with an average of 5 percent from 2000 to 2010, the investment bank said.

"Spillover effects from the Syrian conflict and increased domestic instability are reflected in a moderate performance of the service-based (tourism, financial sector) economy," Deutsche Bank said.

The central bank's foreign currency reserves estimated at about $35bn provide a cushion to external imbalances and the country's banking sector which holds the majority of the state's public debt remain "well capitalized," the bank said.

Lebanon has a public debt of about $56bn, one of the highest in the world accounting for 135 percent of the country's gross domestic product. The country amassed the debt in the reconstruction phase that followed the end of a 15-year civil war in 1990 and after a month long war with Israel in 2006.

For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.