Basic Country Facts

Economy Economic overview: The 1975-91 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. Peace has enabled the central government to restore control in Beirut, begin collecting taxes, and regain access to key port and government facilities. Economic recovery has been helped by a financially sound banking system and resilient small- and medium-scale manufacturers. Family remittances, banking services, manufactured and farm exports, and international aid are the main sources of foreign exchange. In the relatively settled year of 1991, industrial production, agricultural output, and exports showed substantial gains. The rebuilding of the war-ravaged country was delayed in 1992 because of an upturn in political wrangling. In October 1992, Rafiq al-HARIRI was appointed prime minister. A billionaire entrepreneur, al-HARIRI, announced ambitious plans for Lebanon's reconstruction, which involve a substantial influx of foreign aid and investment. The economy has posted considerable gains since 1992, with GDP rebounding, inflation falling, and foreign capital inflows jumping. Signs of strain have emerged in recent years, however, as the government budget deficit has risen and grassroots economic dissatisfaction has grown. Meantime, the future fate of Lebanon and its economy is being determined largely by outside forces - in Syria, other Arab nations, Israel, and the West. GDP: purchasing power parity - $18.3 billion (1995 est.) GDP real growth rate: 6.5% (1995 est.) GDP per capita: $4,900 (1995 est.) GDP composition by sector: agriculture: 13% industry: 28% services: 59% (1995 est.) Inflation rate (consumer prices): 9% (1995 est.) Labor force: 650,000 by occupation: services 60%, industry 28%, agriculture 12% (1990 est.) Unemployment rate: 30% (1995 est.) Budget: revenues: $1.4 billion expenditures: $3.2 billion, including capital expenditures of $NA (1994 est.) Industries: banking, food processing, textiles, cement, oil refining, chemicals, jewelry, some metal fabricating Industrial production growth rate: NA% Electricity: capacity: 1,220,000 kW production: 2.5 billion kWh consumption per capita: 676 kWh (1993) Agriculture: citrus, vegetables, potatoes, olives, tobacco, hemp (hashish); sheep, goats Illicit drugs: illicit producer of hashish and heroin for the international drug trade; hashish production is shipped to Western Europe, the Middle East, and North and South America; a key locus of cocaine processing and trafficking; a Lebanese/Syrian 1994 eradication campaign practically eliminated the opium crop and caused a 50% decrease in the cannabis crop Exports: $1 billion (f.o.b., 1995 est.) commodities: agricultural products, chemicals, textiles, precious and semiprecious metals and jewelry, metals and metal products partners: Saudi Arabia 13%, Switzerland 12%, UAE 11%, Syria 9%, US 5% Imports: $7.3 billion (c.i.f., 1995 est.) commodities: consumer goods, machinery and transport equipment, petroleum products partners: Italy 14%, France 9%, US 8%, Turkey 5%, Saudi Arabia 3% External debt: $1.2 billion (July 1995) Economic aid: recipient: ODA, $NA Currency: 1 Lebanese pound (£L) = 100 piasters Exchange rates: Lebanese pounds (£L) per US$1 - 1,584.0 (March 1996), 1,621.4 (1995), 1,680.1 (1994), 1,741.4 (1993), 1,712.8 (1992), 928.2 (1991) Fiscal year: calendar year