Can Lebanon Defy Gravity Forever?

Uwe Böwer

No 46, European Economy - Economic Briefs from Directorate General Economic and Financial Affairs (DG ECFIN), European Commission

Abstract: Lebanon’s new government was finally agreed in January 2019, after an almost 9-month deadlock over political representation.As much of the reform momentum stemming from an international investors’ conference in April 2018 has faded, the government is now facing the challenge to reinvigorate the reform agenda and make credible steps towards fiscal consolidation. While Lebanon has long been able to maintain a surprising level of resilience amidst high economic volatility and a tumultuous geopolitical environment, the pressure has been rising to tackle the large twin deficits, the very high level of public debt, and the protracted lack of competitiveness. As life-sustaining financial inflows have slowed down, Lebanon’s past business model has come under scrutiny. Substantial fiscal consolidation and a credible plan for growth-enhancing structural and governance reforms would play an important role in rebuilding investors’ confidence and pave the way for an economic recovery built on a solid foundation. Length: 20 pages

Keywords: Lebanon; fiscal sustainability; external rebalancing; financial stability; growth; public sector governance; Böwer. (search for similar items in EconPapers)
JEL-codes: E52 E62 F31 (search for similar items in EconPapers)
Date: 2019-06
New Economics Papers: this item is included in nep-ara and nep-mac
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