Political, Security Risks May Weaken Lebanon Economy

A London-based institute warned that the growing political and security risks in Lebanon could slow economic growth and impede reconstruction efforts. The report by IHS Markit also expressed fear of a devastating war with Israel over the next five years, Albawaba reported. “A new president and cabinet will allow some improvement in infrastructure and government services, without addressing underlying structural issues. A war with Israel is likely in the next five years, causing extensive damage to utilities, industry, and infrastructure. A war would most likely trigger a debt and currency crisis,” IHS said in a comprehensive report on Lebanon. “Israel, Syria and Hezbollah are increasingly likely to fight a war that devastates Lebanon’s infrastructure.” IHS also stressed that the Lebanese government has yet to seriously address important issues such as corruption and growing public debt. “The government is unlikely to address structural issues such as endemic corruption in the security services and the judiciary, excessive public debt or the impact of over a million Syrian refugees,” it said.