IMF revises growth to one percent

Economy expected
to improve in 2015

The International Monetary Fund (IMF) revised down its forecast of GDP growth for 2014. IMF cut its estimations from 1.5 to one percent. It projected economic growth at 1.5 percent in 2012, two percent in 2011, eight percent in 2010, and ten percent in 2009.

The IMF anticipates a brighter economy for the years to come with real GDP growth at 2.5 percent in 2015.

In its April ‘World Economic Outlook’, the IMF said: “Economic activity will get stronger in the MENA region in 2014-2015. Export growth will improve along with the recovery of trading partners and public and private sector investment accelerates.” This could have a positive impact on the local market. The report highlights the vulnerable confidence, high unemployment, low competitiveness, and large total public deficit. These will continue to weigh on economic prospects.

“The Syrian conflict continues to weigh heavily on Lebanon with the intensification of sectarian violence, hampered confidence, and added pressures to a deteriorating fiscal position, leaving growth flat in 2014,” said the report.

Reforms to raise and diversify potential output and improve competitiveness and resilience are essential for achieving sustainable and inclusive growth. These will also create jobs, according to the report.

The current accounts balance is also expected to go down in the few coming years.