As the conflict in Syria continues, its impact on neighbouring Lebanon's economy is intensifying. The steady flow of refugees, accompanied by cross-border violence, has dented the country’s growth rate while stretching limited public finances. According to the World Bank, the conflict is expected to wipe off $1.5bn from Lebanon’s government revenues between 2012 and 2014, as diminishing consumer and investor confidence, as well as depleted bilateral trade, take their toll.
For Riad Salameh, governor of Lebanon’s central bank, Banque du Liban, the preceding years have been among the most challenging since he assumed the role in 1993. “The negative influence on Lebanon of the Syrian war has been profound, particularly in terms of refugees. As long as this conflict continues, investment and consumption will be substantially reduced. For example, Gulf country citizens have been prohibited by their governments from visiting Lebanon, and they are important investors and consumers in the domestic economy,” says Mr Salameh.
