Lebanon Financial Market Update
Lebanon predicts 7% GDP growth
Lebanon's central bank has forecast that the country's GDP will reach 7% in 2009, while inflation will set at 3%, the Daily Star has reported. Lebanon's balance of payments for the first nine- month period of 2009 had recorded a surplus of $4.8bn, according to Makram Bou Nassar, deputy director of the Foreign Affairs Department at the Central Bank. Customer deposits are growing by 20% annually and are expected to reach $100bn at the end of 2009, he said. The central bank's foreign assets, excluding gold, had reached a new historical high of $26bn, Bou Nasser noted.
Lebanon plans Eurobond issue
Lebanese caretaker finance minister Mohammad Shatah has said that the country is planning a new Eurobond issue in the coming weeks valued at up to $500m to help service existing debt and subsidize a state-owned power company, the Daily Star has reported. 'It's going to be a limited issue: limited by what the government is authorized to issue without new legislation. There will be one soon ... not exceeding $500 million,' Shatah said.
Lebanon on track for 7% rise in GDP
Lebanon is on track to achive 7% growth in GDP in 2009, according to the Investment Development Authority of Lebanon. The organization said that foreign direct investments increased by 32% from $2.5bn in 2007 to $3.6bn in 2008, and is poised to grow by up to 20% to reach $4.32bn this year. Bank deposits have increased by 50% from July 2008 to July 2009 despite the shortage in cash flow in the global market, it added.
World Bank reduces Lebanon's growth prospects
The World Bank has revised downward its economic growth forecast for Lebanon to 2.5% in 2009, from an earlier forecast of 4% at the end of last year. It said that Lebanon's growth prospects - as well as those of neighbouring economies - will depend on how well GCC economies perform, as well as to a lesser extent those of the international donor community. The GCC has been the main source of remittances, foreign direct investment and tourism to the Levant, while the international community has provided foreign aid, the World Bank said. Lebanon's current account deficit is equivalent to 14.7% of GDP in 2008.
Lebanon's growth rate to be 4% by end-2009, says Salameh
Lebanon's GDP growth is expected to reach 4% or maybe more at the end of 2009, according to the country's central bank governor. Riad Salameh also said the Lebanese pound is still very stable and the gross foreign currency reserves of the central bank have reached $23bn, the highest in Lebanon's history.
Stable interest rates in Lebanon
Lebanon's central bank governor said inflation this year should not exceed the five per cent of last year and forecast stable interest rates which may fall if the country's political crisis eases, reported Gulf Daily News. Riad Salameh said he did not expect a repeat of steep inflation that was driven by a climb in the prices of oil, commodities and the euro in the last quarter of last year. Interest rates would remain stable or fall if there was a resolution to Lebanon's political crisis, which has paralysed much of government for 15 months, left the country without a president since November.
Gulf oil boosts Lebanon
Lebanon's Finance Minister Jihad Azour has said an ongoing oil boom in the Gulf will help its own economy grow by about 2.5% next year, reported Reuters. Azour warned, however, that high oil and commodity prices will contribute to keeping inflation at around the 4% mark. He added that the country's political instability had meant growth of up to 8% had been clipped to around 3% this year.
Lebanon shares drop in political fallout
Lebanon's BLOM stock index fell 4.2% on Tuesday due to concern's about the country's difficulties in electing a president, reported Reuters. Parliament Speaker Nabih Berri on Monday postponed elections in the country for the eighth time to December 17 to give rival leaders more time to reach a deal expected to make the army chief president. The index closed at 1,519.08 points compared to Monday's 1,585.60 points.
Lebanon's stock market surges
Lebanon's BLOM stock index closed Monday on the year's high on optimism that the country's political deadlock will end, reported Reuters. The index surged 6.25% to close on 1,572 points.
Wealthy Lebanese lured to US
Lebanese businessmen are being encouraged to apply for immigration to the US under a 'million dollar visa' programme, the Daily Star reported. Expand to America, a Washington-based consultancy, is assisting wealthy locals to apply for EB-5 Multi National Executive visas, which grant foreigners temporary residency in exchange for an investment of between $0.5m and $1m in a US business that generates a minimum of ten jobs. An ETA official told the daily that interest was 'high'.
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