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FINANCIAL NEWS
Lebanon’s public debt up 8% in Jan
15 Apr 2013
(MENAFN) The Association of Banks in Lebanon announced that at the end of January, the country’s public debt reached USD58 billion, with a gain of 8 percent from 2012’s same period, reported Arabian Business.
At the end of last year, Lebanon’s public debt surged to 140 percent of gross domestic product (GDP) from nearly 130 percent of GDP in 2011.
The ballooning public debt is attributed to slowing economy accompanied with the country’s lack of fiscal and structural reforms, in addition to the war in neighboring Syria.
The regional unrest has hampered the country’s tourism sector, with the number of tourists falling by 3.7 percent in 2012, while construction permits declined by 10.8 percent.
In the mean time, the fiscal deficit grew to around 9.4 percent of GDP compared with 6.1 percent in 2011.
In 2012, Lebanon’s GDP has contracted to almost 0.6 percent from 1.8 percent a year before, whereas foreign direct investment (FDI) inflows, which made up nearly 2.7 percent of GDP, dived by 68 percent to USD1.1 billion.
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