Economic optimism in Lebanon with the nearing of Presidential election

An atmosphere of optimism has hit the Lebanese financial markets last week with the imminent presidency elections planned for the end of this month. In this respect, Solidere stocks continued to skyrocket since the end of last week rising by 19% in only 2 days. The electronic Al Joumhouriya portal reported a significant turnout on purchasing local stocks, particularly Solidere stocks of categories A and B. On the same subject, financial expert, Dr. Gazi Wazneh, disclosed last week that economic economy in 2017 will be better than the previous year, with an expected 2.5% rise against less than 1% currently, as well as the performance of the main economic sectors, namely tourism, real estate investment and consumption. Commenting on the predictable détente after the presidency elections, Wazneh explained that the key component of the 2017 economy will be the positive economic indicators in the event of formation of a new government in the few weeks that follow the election of the president, and consequently, will be less positive if no cabinet is formed. He stressed that in either case, the economy will be  promising next year. The first positive indicator for the presidential breakthrough, Wazneh expounded, is the increase in the size of trading exchange in the Beirut Stock Exchange and the enhanced price in Solidere stocks, in addition to the overall improvement in the circles of investors, business people, and owners of economic institutions. As to the pressing economic priorities for the foreseeable future, Wazneh defined them as follows: Adopt the 2017 general budget to reduce the growing fiscal deficit and public debt; approve the oil and gas related decrees; boost growth; improve relations between Lebanon and the Arab Gulf states; intensify contacts with the outside world to attract the aid needed to alleviate the burden of the Syrian refugee on Lebanon, and finally, resolve the chronic problem of electricity. (The Daily Star, Al Mustaqbal, October 20, 24, 2016)