Lebanon

Margaret Shepler

Overall Score: 59.3 World Rank: 94

Lebanon quick facts/ United states

  • Population:4.5 million/ 316.4 million
  • GDP:$66.3 billion/ $16.8 trillion
  • GDP Growth %:1.0%/ 1.9%
  • GDP Per Capita:$14,845/ $53,101
  • Unemployment:6.6%/ 7.5%
  • Inflation:3.2%/ 1.5%
  • Foreign Direct Investment:$2.8 billion/ $187.5 billion

7 major sources of economic progress

legal system

The Lebanese legal system is based off the French. Lebanon is a civil law country and has its own set of codes. The most important code is code of obligations and contracts. They have very strong laws for purpose of national defense. Lebanon also has the death penalty for certain crimes. They have been trying to accept to pick your marriage instead of a mandatory marriage, they want this to minimize conflict and sectarian violence.

Competitive Markets

Lebanon has been working on its competition policy. Imports on use cars from Israel are forbidden as well as foreign investments. The financial sector is dominated by banks. Banks remain the cornerstone of the economy.

Limits on Government Regulation

Lebanon's top individual income is 20%. Other taxes include an inheritance tax. The over-all tax burden is 15.7% of domestic production. Public debt is equivalent to 139 percent of gross domestic product.

An Efficient Capital Market

In 2011 is when Lebanons capital market law was finally passed. Before the law was passed capital markets were regulated as peripheral activity with BDL. For the development of capital markets the next step for them is more businesses. The capital market law calls for the BSE to turn into a joint-stock company. This is will have shareholders to increase activity because it will run as a for-profit business. Lebanon still has a long way to go for the capital market, but thier beginning is a step in the right direction.

Monetary Stability

Lebanese economy remains healthy due to stability. On monetary developments in 2014 lebanese pound stayed stable by the central banks with $38 billion, centrals banks highest record amount for foreign holdings. 2014 inflation rate stayed under 4 percent which had the central banks earn 2 percent interest, due to stability. With these accomplishments the governor believes that lebanon will be known as knowledge economy.

Low Tax Rates

In Lebanon, the Personal Income Tax Rate is a tax collected from individuals and is imposed on different sources of income. They benchmark from top marginal tax rate, for individuals. Personal income rate is important for the government of lebanon.

Free Trade

Lebanon has the free trade agreement with european free trade association. That allows free market with Switzerland, Norway, Liechtenstein and Iceland. Lebanon is a member of the Greater Arab Free Trade Area which has lebanon recieving full exemption of the tariffs on industrial goods traded between the 17 arab countries. Lebanon is also part of an Observer in the World Trade Organization.
Syrian Crisis Hits Lebanon's Economy

Video summary

Due to the syrian war that started with labanon two years ago the number of tourist that visit dropped more than a 3rd. Many restaurants and hotels had to shut down. Last year the economy in Lebanon grew less than 1 percent. Half a million syrian refugees came intp Lebanon which effected health care and Government services. If this ends soon Lebanons economy should recovery quickly.