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Middle EastJune 1 2018

Lebanon's economy remains on a knife-edge

Lebanon's economy has been underperforming in recent years, hit by political uncertainty and fears over the conflict in Syria. However, an injection of finance from a group of international donors, combined with excitement over oil and gas discoveries, provide some cause for optimism. James King reports.
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Pressure is building on Lebanon’s economy: gross domestic product (GDP) growth is sluggish and estimated to hit between 1% to 1.5% over 2017 and 2018, according to the International Monetary Fund (IMF).

Public debt is high, at 150% of GDP, and is likely to deteriorate as fiscal deficits in the range of 7% to 10% are anticipated over the short term. The country’s current account deficit is also swollen, at close to 20%, with little sign it is set to improve. Inflation, meanwhile, reached 5% over the course of 2017 as higher oil prices and the rising cost of imports pushed prices higher.

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