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• GDP declined for the 4th consecutive year, a total
fall by 58% since 2018; most severe financial crisis
in history in Chile (1926) where real GDP declined
46.6%
• LBP has lost 85% of its value on the black market
• Inflation stood at 240% as of Jan 2022, with food
prices are up 483% => meltdown of salaries, wages
• Unemployment: 50% of the population; Poverty
80% & Food poverty > 50% of population; 82% of
the population plunged into multi-dimensional
poverty
• Lirafication, Inflation & exchange rate
depreciation are a tax on income (reducing real
wages) and a massive wealth tax. The value of $
deposits has been cut by 85% destroying
accumulated financial wealth of several generations
of Lebanese (incl. that of Lebanese Diaspora)• Two major external shocks: Covid pandemic led to a supply shock & Beirut Port
explosion led to massive losses ($15bn) and aggravated loss of confidence in overall
governance
• Crisis in Syria had negative spillover effects on Lebanon, with Caesar Act (Dec
2019) and resulting sanctions resulting in increased demand for forex (US$) and massive
smuggling from Lebanon due to subsidised fuel, medicines and other essentials.
• Geopolitical tensions with the GCC resulted lower trade, investment & remittances
• Ongoing mass migration of Lebanon’s human capital (doctors, engineers,
professionals..) threatens ability of Lebanon to recover in the future and its long-term
growth prospects. Long-term scarring effects.
• 4 main pillars of LB economy are being destroyed: trade & tourism, health,
education, banking & finance[pdf-embedder url="https://www.e-lebanon.org/wp-content/uploads/2022/03/Lebanon-Failed-State-or-Transformation-U-of-Balamand-23-Mar-2022-2.pdf" title="Lebanon Failed State or Transformation U of Balamand 23 Mar 2022 (2)"]
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