Lebanon’s economic growth sets back to 1.5% in 2014 and ambitious suggestions to redress the economy

Economic expert, Ghazi Wazen, considered that the economic situation of Lebanon was difficult and grim in 2014 as most economic and financial indicatoes recorded a significant setback.  According to Wazni, the economic priorities for 2015 are first the endorsement of the 2015 budget which ought to include allocations for investments, endorsing the decrees related to oil exploitation of by the Cabinet, incentivizing economic growth, curbing the deficit through controlling mismanagement of expenses and income and making use of the international drop in fuel oil cost to address the problem of electricity, introducing reforms at the level of the public-private partnership and finally containing the displacement crisis and endorsing the law to increase salaries in the public sector.
 
With regards to the 2014 indicators, economic growth continued to deteriorate thus recording less than 1.5% as a result of the negative impact witnessed in tourism, trade and real estate.  Deficit in public finance remained high at 10% despite the fact that Lebanon benefited from the international drop in the cost of fuel oil.  The general public deficit continued to deteriorate and the level of debts to increase compared to the GDP.
 
Tourism continued to witness a setback and the president of the Syndicate of Hotels, Pierre Ashkar, described the situation as being “very difficult”.  Ashkar spoke to As Safir newspaper, noting that that overall income from the sector decreased by 75% compared to 2010.
(Source: As-Safir and Al- Diyar 31 December 2014)