For a significant period of time, Lebanon has been living well beyond its means, with a perpetual governmental yearly fiscal deficit. Lebanon’s public debt, about 160% of the country’s gross domestic product (GDP), has been spiralling out of control, in large part due to endemic corruption.
At the political level, persistent bickering and partisanship has led to a state of institutional paralysis, particularly as it pertains to electing public servants, forming a government and enacting new laws and regulations. At the international level, the Arab-Israeli conflict, compounded by poor US-Iran relations, has perpetuated a negative geopolitical climate and country risk factor with far-reaching negative repercussions on economic prosperity and growth.
