Ambitious presidential declarations in the face of persistently dire economic conditions

President Elect, General Michel Aoun underlined the importance of solidarity among all components of the civil society, economic bodies and other sectors to the end of achieving economic growth and prosperity in the country. Aoun pointed out that continuous dependence of the economy on royalties has substantially eroded the middle class and increased public debt. Aoun, during his meeting with the President of the Socio-Economic Council, Roger Nesnas, said, “we should boost productivity rather than keep on borrowing.” He called for an “all-out and comprehensive participation in efforts that will inform the right decisions to revive national economy and implement development initiatives that meet the needs of the people.” 

Notwithstanding the recent optimistic official declarations, the economic situation in Lebanon remains unchanged. In this respect, the labor minister said last week that a number of local establishments continue to lay off their employees and workers on the pretext of harsh economic and financial circumstances (for full names of the businesses, go to the following link: http://bit.ly/2g4kkRI). Meanwhile, the World Bank has released a report in mid-November reviewing the latest economic developments in Lebanon during the past 6 months. The WB has seemingly lowered its estimation of real economic growth in the country for last year from 1.5% to 1.3%. Furthermore, the WB report forecasted that public debt in the forthcoming years will continue to grow reaching nearly 148.7% of the GDP in 2016, 155.5% in 2017 and 158.4% in 2018 

(Al Diyar, An Nahar, November 14, December 4 and 6, 2016)

 

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