Lebanon Economy Profile 2004

Economy - overview

The 1975-91 civil war seriously damaged Lebanon's economic infrastructure, cut national output by half, and all but ended Lebanon's position as a Middle Eastern entrepot and banking hub. Peace enabled the central government to restore control in Beirut, begin collecting taxes, and regain access to key port and government facilities. Economic recovery was helped by a financially sound banking system and resilient small- and medium-scale manufacturers. Family remittances, banking services, manufactured and farm exports, and international aid provided the main sources of foreign exchange. Lebanon's economy made impressive gains since the launch in 1993 of "Horizon 2000," the government's $20 billion reconstruction program. Real GDP grew 8% in 1994, 7% in 1995, 4% in 1996 and in 1997, but slowed to 1.2% in 1998, -1.6% in 1999, -0.6% in 2000, 0.8% in 2001, 1.5% in 2002, and 3% in 2003. During the 1990s, annual inflation fell to almost 0% from more than 100%. Lebanon has rebuilt much of its war-torn physical and financial infrastructure. The government nonetheless faces serious challenges in the economic arena. It has funded reconstruction by borrowing heavily - mostly from domestic banks. In order to reduce the ballooning national debt, the re-installed HARIRI government began an economic austerity program to rein in government expenditures, increase revenue collection, and privatize state enterprises. The HARIRI government met with international donors at the Paris II conference in November 2002 to seek bilateral assistance restructuring its domestic debt at lower rates of interest. While privatization of state-owned enterprises had not occurred by the end of 2003, massive receipts from donor nations stabilized government finances in 2002-04.

GDP (purchasing power parity)

purchasing power parity - $17.82 billion (2003 est.)

GDP - real growth rate

3% (2003 est.)

GDP - per capita (PPP)

purchasing power parity - $4,800 (2003 est.)

GDP - composition by sector

agriculture: 12%
industry: 21%
services: 67% (2000)

Population below poverty line

28% (1999 est.)

Household income or consumption by percentage share

lowest 10%: NA
highest 10%: NA

Inflation rate (consumer prices)

2.5% (2003 est.)

Labor force

1.5 million
note: in addition, there are as many as 1 million foreign workers (2001 est.)

Labor force - by occupation

agriculture NA, industry NA, services NA

Unemployment rate

18% (1997 est.)

Budget

revenues: $4.414 billion
expenditures: $7.026 billion, including capital expenditures of NA (2003 est.)

Industries

banking; food processing; jewelry; cement; textiles; mineral and chemical products; wood and furniture products; oil refining; metal fabricating

Industrial production growth rate

NA

Electricity - production

6.728 billion kWh (2001)

Electricity - consumption

7.44 billion kWh (2001)

Electricity - exports

0 kWh (2001)

Electricity - imports

1.183 billion kWh (2001)

Oil - production

0 bbl/day (2001 est.)

Oil - consumption

107,000 bbl/day (2001 est.)

Oil - imports

NA (2001)

Oil - exports

NA (2001)

Agriculture - products

citrus, grapes, tomatoes, apples, vegetables, potatoes, olives, tobacco; sheep, goats

Exports

$1.359 billion f.o.b. (2003 est.)

Exports - commodities

authentic jewelry, inorganic chemicals, miscellaneous consumer goods, fruit, tobacco, construction minerals, electric power machinery and switchgear, textile fibers, paper

Exports - partners

Switzerland 10.8%, UAE 10%, Saudi Arabia 7.5%, US 7.3%, Turkey 5.5%, Jordan 4.4% (2003)

Imports

$6.073 billion f.o.b. (2003 est.)

Imports - commodities

petroleum products, cars, medicinal products, clothing, meat and live animals, consumer goods, paper, textile fabrics, tobacco

Imports - partners

France 13.4%, Germany 11.7%, Italy 10.7%, Syria 5.3%, China 5.2%, UK 4.9%, US 4.5% (2003)

Debt - external

$20.79 billion (2003 est.)

Economic aid - recipient

$3.5 billion (pledges 1997-2001); $4.2 billion in soft loan pledges November 2002 Paris II Aid Conference (2002)

Currency

Lebanese pound (LBP)

Currency (code)

LBP

Exchange rates

Lebanese pounds per US dollar - 1,507.5 (2003), 1,507.5 (2002), 1,507.5 (2001), 1,507.5 (2000), 1,507.84 (1999)

Fiscal year

calendar year