Economic and Managerial analysis of Lebanese economy

By





ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________



ABSTRACT

In this study, an attempt has been made to conduct an Economic and Managerial analysis of Lebanese economy. The major reasons because of which this research was carried out, was to determine the economic condition of Lebanon, trade statistics, the inflation rate and GDP growth, unemployment rate, the impact of political factors on their economy and the future outlook of the economy. All these factors were very important for assessing the overall position of Lebanon and their significance in the region. The vital information regarding Lebanese Economy was gathered from various sources to assist in finding out the reasons for their current position. It was concluded that there were various factors that led to the current position that Lebanese economy is going through and future strategies were even proposed in this research that will help them to recover from the present problems. Therefore, a detailed analysis was carried out that explored important aspects regarding Lebanese economy and solutions for resolving their problems was even discussed in detail.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background1

Research Aim2

Research Question2

CHAPTER 2: LITERATURE REVIEW4

Introduction4

Lebanon: Economic Outlook6

Lebanon's Main Trading Partners7

Sustained Economic Growth7

Surveys and Results yielded8

Lebanon's Trade Performance10

Consensus and Disagreements over Lebanese Economy among various scholars12

CHAPTER 3: METHODOLOGY16

Research strategy16

Research Approach17

Qualitative Data Analysis18

Literature Search18

Validity19

Research Ethics20

CHAPTER 4: DISCUSSION AND ANALYSIS21

Outlook for 2011-12: Fiscal policy23

Outlook for 2011-12: Monetary policy24

Outlook for 2011-12: Economic growth26

Outlook for 2011-12: In focus: Lebanon distances itself from UN statement on Syria27

Economic policy: Riad Salameh is reappointed as central bank governor31

Economic policy: New finance minister pledges to maintain spending plans32

Economic policy: Budget investigations spark fears of retribution33

Economic policy: Budget allocations create tensions34

Economic performance: Tourist arrivals fall by 20% in the first half of 201135

Economic performance: Listed banks report 8% profits rise, but bourse activity suffers36

Data and charts: Annual data and forecast38

CHAPTER 5: CONCLUSION43

Scope43

Limitations44

Recommendations44

REFERENCES45

APPENDICES49



CHAPTER 1: INTRODUCTION

Background

Lebanon has a free-market economy and a strong laissez-faire commercial tradition. The government does not restrict foreign investment; however, the investment climate suffers from red tape, corruption, arbitrary licensing decisions, high taxes, tariffs, and fees, archaic legislation, and weak intellectual property rights. The Lebanese economy is service-oriented; main growth sectors include banking and tourism. The 1975-90 civil war seriously damaged Lebanon's economic infrastructure, cut national output by half, and all but ended Lebanon's position as a Middle Eastern entrepot and banking hub. In the years since, Lebanon has rebuilt much of its war-torn physical and financial infrastructure by borrowing heavily - mostly from domestic banks. In an attempt to reduce the ballooning national debt, ...