The crisis in neighbouring Syria, domestic political uncertainty and a deteriorating fiscal position have all weighed heavily on Lebanon’s economy over the past year. The Syrian conflict alone has been devastating to Lebanon, with the World Bank estimating that the fiscal impact on the country between 2012 and 2014 reached a cumulative $2.6bn, or about 6% of the 2013 gross domestic product (GDP).
These problems have been compounded by a fall in exports and the presence of more than 1.5 million refugees – equivalent to about 25% of the total population – now resident in the country.