Total imports to Lebanon for the period rose 35 percent to $4.3 billion, led by imports of mineral products. Total exports from Lebanon to abroad reached $1 billion, led by exports of jewelry materials.

The widening deficit has not surprised Gaby Tamer, the President of the Syndicate of Lebanese Chemical Industries. It was within his expectations. “The trade deficit will keep on increasing as many of our imports cannot be manufactured locally- such as vehicles and cars,” he said.

Tamer, also Vice-President of the Chamber of Commerce, Industry and Agriculture of Beirut and Mount Lebanon, stressed however the need to revitalize the national industry to increase the country’s exports.

He praised the step of the Central Bank which has approved a special credit facility to industrialists willing to renovate or undertake maintenance for their equipment.

Tamer called on all industrialists to take advantage of this “opportunity” as the credit facility which industrialists can get from any bank, offers an encouraging and low interest rate of only one percent. He expected this loan to help enhance the national industry and impact positively on the value of exports in the coming period.

For the quarter, the country’s total imports of mineral products reached $1 billion, constituting the largest share of imported products at 23 percent, followed by imports of machinery and mechanical equipment at $499 million or 11 percent of the total figure. Imports of transport equipment came third. They constituted ten percent of total imports at a total value of $435 million.

Exports of jewelry items kept the lead position on the country’s exports list. Jewelry and pearl stone exports reached $279 million for the first quarter (27 percent of the total bill), followed by imports of machinery and chemical appliances at $163 million (16 percent of the total), and Base metals and articles of base metal were the third largest exported item at $124 million (12 percent of the total).

Largest exporter to Lebanon for the period, was the United States (US) which has beaten China to the top of the list. For the period, total US exports to Lebanon reached $447 million. Total exports of Chinese origin reached $374 million, and Italy’s exports to the country totaled $340 million.

The country’s main export destination country was Switzerland which topped the list of importing countries buying $132 million worth of local products, followed by the United Arab Emirates and Iraq at $96 million and $68 million respectively.  

Tamer said that many international manufacturing firms like Henkel and Procter and Gamble have migrated Lebanon to other neighboring Arab countries, such as Syria, Iraq, and Saudi Arabia as those countries have offered them with better incentive packages such as tax incentives and the proper infrastructure such as water and power.

He said that the government has to provide suitable legislations and motivation packages to drive such firms and others to come back to the country.

Tamer said he senses a real commitment from the government to spur the industry. However, he stressed the need to speed up those steps.