Wholesale activity drops in the second half of 2016

During the period which preceded the election of the new president and the formation of the new cabinet, which witnessed very high political tensions and uncertainties, the data of the Retail Sales Index for the second half of 2016, recorded a persistent decline. The Index, to note, was published on March 15 by the Lebanese Franchise Association (LFA) and the Chamber of Commerce, Industry and Agriculture in Beirut and Mount Lebanon. The 9 categories of consumer goods and services in the country, have fallen by 0.75% in 2016 compared to 2015, while the overall retail index remained at 10.23% below its 2012 base year level, which is 11.10%. The chair of the Lebanese Federation of Chambers, Mohamad Shukair, explained that the downfall reflects a slow economic growth, but said that notwithstanding the election of the president of the country and the resultant government, Lebanon has seen a continuous economic slowdown in the first 2 months of the present year, in fact, the harshest for years. This, he maintained, is indicative of a more profound problem that requires a comprehensive economic emergency plan. Shukair criticized the combination of tax hikes imposed by the Government on ordinary individuals and establishments and the extensive state spending, warning this will make things worse. For his part, LFA president, Charles Arbid, pointed out that the retail activity index designates a prolonged recession which has undermined the capacities of businesses to expand their investments and generate more jobs, noting that such indices denote a continual decline for the fourth consecutive year. It should be noted, that the Beirut Traders Association Fransabank Retail Index-First Quarter 2016, has shown a relative activity of the Lebanese markets during the optimistic period in the first quarter of the past year, but which quickly slowed down during consultations for elections of the President and the formation of the Cabinet, and remained modest after that period (c.f: http://bit.ly/2nEfbTa) . (Al Mustaqbal, Al Diyar, Al Hayat, March 16, 2017)