Lebanon’s economy will continue to take in the negative effects of unrest in Syria over the coming period, although economic growth could expand to 3.6% in 2012 and 4.5% in 2013, according to latest Global Economic Prospects report from the World Bank. Lebanon’s economic and financial situation will be supported by gains from regional oil exports, which will contribute to Lebanon’s financial inflows; noting that GCC counties will grow by an average 4.8% in 2012, owing to the spike in oil prices this year. Lebanon’s main economic drivers, especially tourism, will however continue to suffer from regional unrest, with tourist arrivals remaining low after a 24% annual drop in 2011. The current account deficit will still ease to an estimated 18.2% of GDP in 2012 from 23% of GDP in 2011.
The Lebanon Brief – BLOM Bank