Economic indicators recoil

Banking sector’s growth retreats to four percent at end May 2011

July 28, 2011- The governmental vacuum that had prevailed over the first few months of this year forced a declining trend on most economic indicators, compared to the same period a year earlier, according to the Association of Banks in Lebanon (ABL).

Growth in total consolidated assets of commercial banks dropped to four percent in the first five months of 2011, compared to a 4.8 percent growth for the same period last year.

Deposit dollarization rate grew to 66.4 percent at the end of May 2011, up from 63.2 percent at the end of 2010. The Central Bank’s foreign reserves slightly retreated to $28.4 billion during the first five months of this year.
Interest rates on Lebanese Lira were unchanged over the first five months of 2011.

The overall balance of payments posted a deficit of over one billion dollars at end May 2011, compared to a surplus recorded for the same period a year earlier. The deficit growth was triggered by an expansion in the trade deficit to $5.9 billion, as well as a slowdown in the inflow of remittances.