IPR: The prime source for business information on the Middle East  ipr    Info-Prod Research (Middle East) Ltd.
   Home      Country Guide      Reports      Services      Business Development-    Clients      About IPR     

   Publications      Contact Us

CONTENTS Lebanon  Economic AnalysisLegal Information Info-Prod Country Guide
CHARACTERISTICS   INDICATORS   ECONOMIC SECTORS   INVESTMENT ISSUES   PROJECTS   PROSPECTS

Investment Issues

Public Finance

As noted, the government's budget deficit remains one of Lebanon's most important and pressing economic problems. The budget has been in chronic deficit throughout the last decade as the government continued to pay its employees and to supply goods, despite its inability to collect sufficient revenues. The deficit has been financed by borrowing from the banking sector.

As reconstruction takes off, capital expenditures are expected to increase dramatically, with a consequential sharp rise in the overall fiscal deficit in the absence of fiscal adjustment.

Since 1992, the government has taken a number of practical measures to reduce the deficit and to maintain a stable budget. These include the regulation of public expenditure and steps to increase internal revenues.

The huge structural imbalance in Lebanon's trade has also restricted growth. The manufacturing sector is not sufficiently developed to provide an alternative to imported consumer goods or production input. The result is that economic activity remains almost entirely dependent on imports.

1993 - 2003 Budgetary Allocations

Transportation

US$ 2,969 billion

 

Water Supply

US$ 930.0 million

Electricity

US$ 1,645 billion

 

Government Buildings

US$ 270.0 million

Education

US$ 1,530 billion

 

Solid Waste

US$ 180.0 million

Housing and Resettlement

US$ 1,050 billion

 

Tourism

US$ 188.7 million

Telecommunications

US$ 715.0 million

 

Social Affairs

US$ 130.0 million

Agriculture and Irrigation

US$ 650.0 million

 

Management and Implementation

US$ 150.2 million

Public Health

US$ 500.3 million

 

Private Sector Services

US$ 100.6 million

Wastewater Treatment

US$ 500.3 million

 

Information

US$ 50.0 million

Industry

US$ 394.9 million

 

Environment

US$  35.0 million

Privatization

The Lebanese government habeen making fairly modest steps towards privatization. One project that seems likely to get off the ground is the expansion and management of the port of Sidon. Consideration is also being given to the private management of the port of Beirut. Plans are being drawn for the private operation of the postal service under a twelve year concession. The US$ 50 million opwill cover the entire country and will entail mail handling, gathering, sorting, distribution, the installation of postal boxes, express mail, facsimile services and stamp sales.

Stock Exchange

The Beirut Stock Exchange (BSE) was reopened in the beginning of 1996, after more than eleven years of inactivity. The BSE is considered to be an important financial tool which will assist in stimulating the Lebanese economy by attracting capital to the country. Currently, there are only a few securities traded on the BSE, and it does not meet international stock exchange standards. In addition, the BSE faces fierce competition from the Tel-Aviv Stock Exchange. The Lebanese government intends to increase the level of trade on the BSE by developing its exchange standards, enhancing technological support, and offering attractive tax rates and liberal currency regulations to foreign investors.


Previous
Chapter
Contents
Menu
Next
Chapter
    

   Home      Country Guide      Reports      Services      Business Development-    Clients      About IPR     

   Publications ;   Contact Us

(c) 1999 Info-Prod Research (Middle East) Ltd.
Tel: 972-3-7512780, Fax: 972-3-7512781
Yahalom Building, 30th floor,
3A Jabotinsky St., Ramat Gan 52520, Israel
office@infoprod.co.il

Click Here!