Lebanon Economy Struggling

Lebanon’s economy has been in a precarious position in recent years. Labeled as the country with the 3rd highest debt-to-GDP deficit in the world early in the year by the International Monetary Fund, the tiny Mediterranean nation has struggled to support its economy ever since its 15-year long civil war ended in the early 1990s, IMEinfo reported. The IMF warns that Lebanon’s debt-to-GDP deficit could soar to 180% by 2023 from its current 150%. High levels of unemployment, rampant corruption, a refugee crisis, and the nearby Syrian civil war have all contributed to this stagnant economic environment. Currently, the budgeted deficit for 2018 is $4.8 billion, Finance Minister Ali Hassan Khalil said earlier in the year, Reuters reports. He said this was $145.1 million less than in 2017, while also saying that Lebanon was spending 38% of its budget on debt servicing. On a positive note, tourism figures have begun making a recovery following a slump triggered by the onset of the nearby conflict that started in 2011. The tourism sector accounts for more than 19% of the country’s GDP, according to a report by Blom Bank. The ministry of tourism revealed that tourist arrivals rose 2.97% year-on-year by February 2018.