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Lebanon Economic Monitor - De-Risking Lebanon (English)

Lebanon's macro-financial conditions are currently under heavy scrutiny as the country faces increasing challenges. The risk profile for Lebanon is rising sharply in light of the convergence of a number of negative local and global factors, including global monetary conditions. Meanwhile, the utility of some of the tools used by the central bank is depleting following years of application. The central bank has responded by beefing up its stock of foreign exchange reserves, lengthening the maturity of deposits and limiting the liquidity available, thereby inhibiting speculation against the Lebanese Pound. In this issue of the Lebanon Economic Monitor (LEM), we focus on Lebanon's macrofinancial conditions. We begin by explaining real economy and macro-fiscal features that underpin these conditions. We then present a synopsis on the intertwining monetary and financial sectors, followed by an elucidation on latest macrofinancial dynamics. Naturally, the role and activity of the central bank is given particular attention.

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Details

  • Author

    Harake,Wissam, Hamadeh,Nada, Kostopoulos,Christos, Carey,Kevin, Mobarek,Sameh I., Ziade,Mona

  • Document Date

    2018/10/01

  • Document Type

    Working Paper

  • Report Number

    131463

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Lebanon,

  • Region

    Middle East and North Africa,

  • Disclosure Date

    2018/10/30

  • Disclosure Status

    Disclosed

  • Doc Name

    Lebanon Economic Monitor - De-Risking Lebanon

  • Keywords

    fixed exchange rate regime; errors and omission; Capital Adequacy Ratio; small and medium enterprise; exposure to emerging market; structure of interest rates; current account deficit; interest rate structure; balance of payment; global interest rates; Foreign Exchange Reserve; gross public debt; commercial bank; certificate of deposit; domestic commercial bank; net foreign asset; tier 2 capital; gdp growth rate; diversified export base; external public debt; domestic public debt; share of export; power generation mix; trade and investment; emerging market debt; import of goods; real exchange rate; nominal exchange rate; Oil & Gas; power generation sector; international labor organization; social protection policy; accumulation of reserve; foreign direct investment; source of inflow; short-term capital inflows; flow of credit; Oil and Gas; financial market participant; Real estate; fiscal deficit; real gdp; financial engineering; trade deficit; trade balance; external deficit; foreign investor; deposit rate; monetary policy; reserve requirement; Financial Sector; risk premium; net export; stimulus package; banking sector; regional crisis; sovereign asset; electricity sector; deposit growth; economic linkage; Travel Services; foreign currency; Job Creation; financial system; retail trade; global market; financial service; lebanese pound; dollar deposit; high debt; debt instrument; legislative session; safe haven; business model; refinancing risk; Civil War; incentive scheme; debt service; financing need; domestic investor; financial crisis; private exchange; bank's assets; consumption base; consumption averaging; income figure; Exchange Rates; outstanding credit; draft law; regional capital; foreign bank; government initiative; negative shock; sovereign debt; foreign holder; financial collapse; financial challenge; commercial banking; crowding out; consumption good; Macroeconomic Policy; high spread; output source; employment opportunities; employment opportunity; war reconstruction; goods market; inclusive growth; asset position; supply side; net tax; fiscal crisis; Energy Sector; Higher Education; widespread poverty; interest income; Labor Market; employment growth; productive activity; foreign labor; domestic trade; private service; reserve asset; funding source; primary beneficiaries; currency operation; outstanding stock; increasing costs; economic reform; banking system; public finance; competitive economy; foreign debt; refugee crisis; modern history; subsidized rate; retail bank; turkish lira; low rate; financial account; political risk; fuel product; threshold effects; risk profile; financial inflow; Salary Scales; comparator country; security environment; Public Spending; international investor; fiscal consolidation; external imbalance; emerging economy; tourism sector; market volatility; capital base; distribution list; annual tourist; Emerging economies; foreign instrument; currency crisis; Wage Bill; external financing; crisis management; living condition; global factor; old-age pension; inflationary pressure; capital account; merchandise export; governance issue; fiscal total; budget rigidity; liquidity crunch; human welfare; prudent investment; liabilities ratio; significant factor; monetary condition; affected country; geopolitical tension; housing sector; banking crisis; financial failure; fiscal balance; personal data; Waste Management; parliamentary election; public capital; Market Risk; high frequency; anecdotal evidence; government's vision; high ratio; fiscal space; portfolio investors; global context; tariff reform; funding resource; monthly observation; correlation coefficient; sovereign guarantee; trade agreement; election law

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Citation

Harake,Wissam Hamadeh,Nada Kostopoulos,Christos Carey,Kevin Mobarek,Sameh I. Ziade,Mona

Lebanon Economic Monitor - De-Risking Lebanon (English). Lebanon Economic Monitor Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/615661540832875043/Lebanon-Economic-Monitor-De-Risking-Lebanon