Implication of the Hariri assassination fatigued the Lebanese economy
Lebanon, Economics, 3/14/2005

The crisis Lebanon has lived led to the halting of long-term economic projects which aim at rebuilding the country, as a result of the situation of uncertainty that followed the assassination of the former Lebanese prime minister Rafic Hariri.

News following the assassination rumored that there is a recession in the tourism sector by as much as 80%.

In his capacity as the engineer of the process of rebuilding Lebanon after the civil war which hit the country and targeted the operation, Hariri had made of the country the destiny of Arab investors especially in the sectors of tourism, real estates and finance.

The drastic situation the country suffers led to decreasing demands for commodities and services. New investments reduced in the economic sectors especially in the tourism sector.

Analysists consider that fears have been increased on the Lebanese pounds in a way that pushed the Central Bank to interfere in the monetary market selling the US dollars in order to preserve the exchange rate of the Lebanese pound. This led to a decrease in the Lebanese reserves of foreign currency estimated at $10 billion.

The crisis resulted in freezing long term construction developmental programs, which will be negatively reflected on the country's total economic indicators.

The Lebanese crisis is expected to decrease the economic growth rate which was expected to reach 5% during this year, an increase in unemployment estimated at 18% as well as the inflation in the general debt estimated at $30 billion.

Previous Stories:
  Recession in deficiency of the Lebanese budget for 2005   (3/7/2005)
  Resignation of the Lebanese government renews pressure on the currency   (3/2/2005)
  Syria- Lebanon cooperation in medicine and agriculture   (2/4/2005)

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