Lebanon

Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

Lebanon has a free-market economy with a strong laissez-faire commercial tradition. Lebanon started with a massive reconstruction program in 1992 to rebuild the country’s physical and social infrastructure devastated by the long civil war (1975-90). The government is still committed to continuing with these structural reforms. The GDP growth rate was 0.0% in 2006 because of the Israeli aerial attacks and invasion, following with 2% in 2007 and 3.5% predicted for 2008. The main challenge faced by the government is the country's debt, which amounts to 185% of GDP. Unemployment is estimated at 18% officially, but in the absence of reliable statistics some estimate it could be as high as 20-25%. Inflation was estimated at around 3.5% in 2007.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	22.44	25.04e	28.94	31.30e	33.21e
GDP (constant prices, annual % change)	0.6	7.5e	8.5	3.0e	4.0
GDP per capita (USD)	6,060e	6,677e	7,617	8,132e	8,518e
Inflation rate (%)	5.6	4.1	10.8	3.6e	2.1
Current Account (billions USD)	-1.26	-1.78e	-3.29e	-3.29e	-3.33e
Current Account (in % of GDP)	-5.6e	-7.1e	-11.4e	-10.5	-10.0

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Main sectors of industry

The agricultural sector contributes nearly 7% to GDP and employs around 15% of the active population. Cereals (mainly wheat and barley), fruits & vegetables, olives, grapes, and tobacco are the main crops. Sheep and goats are also raised. Mineral resources are limited and are only exploited for domestic consumption. The manufacturing sector accounts for 21% of GDP. The main industrial activity is building & construction and civil engineering, but other activities such as jewelry and food-processing are also well developed. The Lebanese economy is highly service-oriented; main growth sectors being banking and tourism. The latter accounts for 72% of GDP. Tourism is undergoing a strong growth phase as a result of huge investments. The IT (information technology) sector is also developing.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	-	-	-
Value added (in % of GDP)	6.4	24.0	69.6
Value added (annual % change)	1.0	0.5	-0.3

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Lebanese Pound (LBP) - Average annual exchange rate for 1 USD	1,507.50	1,507.50	1,507.50	1,507.50	1,507.50

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 58.1/100
Position:: mostly unfree
World Rank:: 95 out of 179
Regional Rank:: 9 out of 18

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Lebanon has proved its openness to international trade by signing an Association Agreement with the EU, by working toward accession to the WTO, and by signing a free-trade agreement with the Gulf Cooperation Council (GCC) in May 2004. The current share of foreign trade in the country’s GDP is nearly 65%. Lebanon's top three export partners are: Iraq, Switzerland, and Syria. The commodities mainly exported are pearls & precious stones, electric & electronic equipment, iron & steel, salt & sulphur, and machinery. Its top three import partners are: Italy, France and Germany. Lebanon mainly imports mineral fuels & oil, vehicles, machinery, pearls & precious stones, and electric & electronic equipment.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	6,528	8,502	9,239	9,345	11,926
Exports of goods (millions USD)	1,733	2,050	2,652	3,207	4,077
Imports of services (millions USD)	6,488	8,230	7,895	8,734	9,986
Exports of services (millions USD)	9,462	9,704	10,858	11,565	12,527
Imports of goods and services (annual % change)	6.1	13.4	-5.7	-2.0	8.9
Exports of goods and services (annual % change)	6.9	25.9	5.0	-6.2	6.6
Imports of goods and services (in % of GDP)	37.7	42.1	43.1	42.6	49.9
Exports of goods and services (in % of GDP)	16.7	19.9	21.1	23.9	25.3
Trade Balance (millions USD)	-4,794	-6,452	-6,588	-6,138	-7,850
Trade Balance (including service) (millions USD)	-1,821	-4,978	-3,624	-3,307	-5,309
Foreign trade (in % of GDP)	54.5	62.0	64.2	66.6	75.2

Source: World Bank

Main partner countries

Main customers (% of exports)	2007
Switzerland	13.4%
United Arab Emirates	8.6%
Syria	8.6%
Saudi Arabia	6.1%
Iraq	4.8%
Turkey	4.6%
Egypt	4.6%
Belgium	3.8%
Jordan	3.5%
United Kingdom	2.8%
Kuwait	2.6%
China	2.5%
United States	2.2%
Qatar	2.0%
Greece	1.9%
France	1.8%
Iran	1.7%
Germany	1.5%
Italy	1.4%
South Korea	1.3%
See more countries	58.5%

Main suppliers (% of imports)	2007
Italy	9.4%
United States	9.3%
France	8.1%
China	6.6%
Egypt	5.5%
Turkey	4.0%
Russia	3.7%
Switzerland	3.4%
Germany	3.3%
United Kingdom	3.2%
Brazil	3.0%
Saudi Arabia	3.0%
Kuwait	2.9%
United Arab Emirates	2.3%
Syria	2.1%
Spain	2.0%
India	1.8%
Belgium	1.8%
Netherlands	1.5%
Greece	1.5%
See more countries	61.2%

Source: Comtrade

Main products

Main exports (% of exports)	2007
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	21.3%
Iron and steelIron and steel	8.0%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	5.0%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	4.7%
Plastics and articles thereofPlastics and articles thereof	4.7%
Copper and articles thereofCopper and articles thereof	4.5%
FertilizersFertilizers	3.6%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	3.6%
Aluminium and articles thereofAluminium and articles thereof	3.6%
Articles of iron or steelArticles of iron or steel	3.3%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	3.0%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	2.5%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	2.3%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	2.2%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	2.1%
Beverages, spirits and vinegarBeverages, spirits and vinegar	1.9%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	1.9%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	1.5%
Lead and articles thereofLead and articles thereof	1.3%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	1.3%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	1.2%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	1.0%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	1.0%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	1.0%
Sugars and sugar confectionerySugars and sugar confectionery	0.9%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.9%
Glass and glasswareGlass and glassware	0.8%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.8%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.7%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.7%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.7%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.7%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.6%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.5%
Pharmaceutical productsPharmaceutical products	0.5%
Ceramic productsCeramic products	0.5%
Rubber and articles thereofRubber and articles thereof	0.5%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.4%
Man-made staple fibresMan-made staple fibres	0.4%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.4%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.3%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.3%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.3%
Miscellaneous chemical productsMiscellaneous chemical products	0.3%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	0.3%
Carpets and other textile floor coveringsCarpets and other textile floor coverings	0.3%
CottonCotton	0.2%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.2%
CerealsCereals	0.2%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.1%
See more products	56.3%

Main imports (% of imports)	2007
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	27.9%
Pharmaceutical productsPharmaceutical products	6.5%
Iron and steelIron and steel	5.6%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	5.1%
Plastics and articles thereofPlastics and articles thereof	4.2%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	3.9%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	2.7%
CerealsCereals	2.4%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	2.3%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	1.9%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	1.9%
Live animalsLive animals	1.6%
Beverages, spirits and vinegarBeverages, spirits and vinegar	1.5%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	1.4%
Articles of iron or steelArticles of iron or steel	1.4%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	1.3%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	1.3%
Aluminium and articles thereofAluminium and articles thereof	1.3%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	1.2%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	1.2%
Miscellaneous chemical productsMiscellaneous chemical products	1.0%
Miscellaneous edible preparationsMiscellaneous edible preparations	1.0%
Copper and articles thereofCopper and articles thereof	1.0%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	1.0%
Rubber and articles thereofRubber and articles thereof	0.9%
Sugars and sugar confectionerySugars and sugar confectionery	0.9%
Meat and edible meat offalMeat and edible meat offal	0.9%
Glass and glasswareGlass and glassware	0.9%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.9%
Ceramic productsCeramic products	0.9%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.8%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.8%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.7%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.7%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.7%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.6%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.6%
Man-made staple fibresMan-made staple fibres	0.6%
Organic chemicalsOrganic chemicals	0.6%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.5%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.5%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.5%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.5%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.5%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.5%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.5%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.4%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.3%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.3%
Man-made filamentsMan-made filaments	0.3%
FertilizersFertilizers	0.3%
CottonCotton	0.3%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.3%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.2%
Knitted or crocheted fabricsKnitted or crocheted fabrics	0.2%
Special woven fabrics; tufted textile fabrics;...Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery	0.2%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.2%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.2%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.2%
Carpets and other textile floor coveringsCarpets and other textile floor coverings	0.2%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.1%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.1%
Live trees and other plants; bulbs, roots and the...Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage	0.1%
Lead and articles thereofLead and articles thereof	0.1%
SilkSilk	0.1%
See more products	50.7%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: Ministry of Economy and Trade
Ministry of Finance
Statistical Office: Central Administration for Statistics
Central Bank: Central Bank of Liban
Stock Exchange: Beirut Stock Exchange
Search Engines: Al Mashriq
Lebanon Links
Libanis
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Economic portals

Political outline

Executive Power: The President is the head of the state and is elected by the National Assembly for a six-year term. The Prime Minister is appointed by the President in consultation with the National Assembly and acts as the head of the government, to serve a four year term. Though the Prime Minister enjoys the executive powers which include implementation of the law in the country and running the day-to-day affairs, the President also holds a strong and influential position which includes promulgation of laws passed by parliament and ratification of treaties. The Cabinet is chosen by the Prime Minister in consultation with the President and members of the National Assembly. As per the constitution of the country, the President must be a Maronite Catholic Christian and the Prime Minister a Sunni Muslim.
Legislative Power: The legislature in Lebanon is unicameral. The parliament called National Assembly consists of 128 seats; with its members elected by popular vote on the basis of proportional representation, with quotas according to religion, to serve four-year terms. Legislative power is vested in both the government and the parliament. The executive branch of the government is directly or indirectly dependent on the support of the parliament, often expressed through a vote of confidence. The Prime Minister cannot dissolve the parliament nor can he veto its enactments. The Speaker of the Parliament must be a Shi'a Muslim.
Main political parties: Lebanon has numerous political parties, but they play a much less significant role in the country’s politics than they do in most parliamentary democracies. Coalitions usually exist only for contesting elections, and rarely form a cohesive bloc in the National Assembly after the election. Some of the major political parties in Lebanon are:

- Current for the Future – a political movement and a major political party in Lebanon;
- Progressive Socialist Party – ideologically secular and officially non-sectarian, but in practice follows the Druze faith;
- Hope Movement – advocates greater respect and resources for Lebanon's Shi'ite population;
- Party of God (Hezbollah) - Shi'a Islamist militant organization, supported by Iran;
- LF (Lebanese Forces) – a former militia but now a secular political party, supported mainly by Christians;
- The Lebanese Phalanges (Amine Gemayel);
- The National Liberal Party (Dory Chamoun);
- The Democratic Renewal Movement (Nassib Lahoud);
- The Movement of the Democratic Left (Atallah Elias);
- The Syrian Nationalist Social Party (Ali Qanso);
- The Free Patriotic Movement (Michel Aoun).
Current political leaders: President: Michel SULAYMAN (as of 25 May 2008)
Prime Minister: Saad HARIRI (since June 2009).
Next election dates: National Assembly elections in 2014.