Factors behind Lebanon’s economic crisis

The current economic crisis in Lebanon is caused by several reasons, chief among which the fact that 75% of Lebanon’s economy relies on services that are directly affected by political and security crises.

Therefore, the cabinet formation crisis has been negatively affecting the consumption and investments, in addition to the regional wars and crisis that have been reflecting on the elements of economic growth:

Exports have dropped by 35% since 5 years

Direct foreign investments have fallen by 45%

Tourism revenues have also decreased by 30%

Facing this economic crisis, Lebanon is facing a financial and monetary stability. A stability believed by experts to be the result of the reserved policy adopted by the banking sector for more than two decades.

For more details, watch the full report in the video above