June 5, 2011 - A report published by the Institute of International Finance, accounted by Credit Libanais’ Weekly Market Watch, expected Lebanon’s deficit to increase to 17.7% of GDP this year up from a deficit of 15.9% of GDP in 2010, attributing the shortfall to the rising imports’ bill as well as the global surge in oil and other commodities’ prices.

The report , titled ‘Capital Flows to Emerging Market Economies’, forecasts a contraction in Lebanon’s net private capital inflows in 2011 to $3.9 billion from $7.7 billion in 2010, however it reassures that Lebanon’s capital and financial accounts will remain in large surplus.

According to the report, Egypt, Tunisia, Lebanon, Jordan, and Libya have experienced, during the first months of 2011, lower private capital inflows and higher current account deficits as well as a slump in tourism receipts and remittances, which has resulted in an increasing gap in the balance of payments of each country.