Lebanon Economic Monitor, Spring 2016

The geo-economy presents Lebanon with
challenges associated with being a nexus for regional fault
lines and risks from its dependence on capital inflows.
Despite markedly improved security conditions since the
start of 2015, anxiety over regional turmoil and potential
spillover effectspersist. All the while, Lebanon continues
to be, by far, the largest host of Syrian refugees (in
proportion to the population). In addition, the economy’s
dependence on its diaspora to finance internal and external
imbalances exposes Lebanon to economic and political
conditions beyond its influence. Despite these challenges
and risks, the political process remains impaired with the
vacant presidency completing its second year with uncertain
prospects of a near-term resolution. On the other hand, a
short-term solution has been found to the garbage crisis
that has left piles of trash uncollected on the streets
across the country since summer 2015. The Lebanon Economic
Monitor provides an update on key economic developments and
policies over the past six months. It also presents findings
from recent World Bank work on Lebanon. It places them in a
longer-term and global context, and assesses the
implications of these developments and other changes in
policy on the outlook for Lebanon. Its coverage ranges from
the macro-economy to financial markets to indicators of
human welfare and development.