The bank said that the macroeconomic and financial sector outperformed market expectations in 2009 despite spillovers stemming from the global financial crisis and political tensions surrounding the June parliamentary polls and the ensuing process of Cabinet formation, said global investment bank, Barclays Capital.

Barclays said it expects growth rates to slow down in 2010 to around five to six percent and inflation rate to increase to four percent driven by higher oil prices and the expected rise in VAT rates.

Remittances are also expected to increase slightly in 2010, according to Barclays, in line with the recovery in the global economy.

Barclays said that its outlook on Lebanon’s credit is tied to the governmental policies.  It expected expenditures to increase in the 2010-budget and, the debt level to remain at 152 percent of GDP.