Reforms of Lebanon economy

Lebanon-governmentTo allow constant grow for its economy, Lebanon government focuses on three pillars:

  • economic revival and sustainable growth
  • fiscal consolidation and improvements of finances in public sectors
  • price, monetary and financial stability

The government also takes a strong commitment on the Lebanese pound, which, in 1999, has been pegged to the USD. During last years of 2000s the government also reduces customs duties, decreased social security fees and reduces any restrictions on investments made by foreigner real estate agencies.

Due to slow money growth and to dollarization of bank deposits, lebanese banks was not able to finance the government, which also burden money to the central bank, which, among the other, has the task to protect the economy from political instability.

In the 2001 the government increased gasoline taxes and approved a VAT which became effective since the following year.

Since 2002 one of the first tasks for lebanese government was privatization. Starting from electricity and telecom, other sectors in which the government planned for sales was water, Beirut port and state airline. This also brings new savings and a drop in interest rates, plus a good growth in the private sector and in foreign investments: the right recipe to allow the lebanese economy grow in a sustainable way. Regarding fiscal consolidation and improvements of finances in public sectors, the government of this country wants to focus on tax reforms and on an improved debt management.

Among the foreign companies which opened a branch in Lebanon after lifting password restrictions are Microsoft, Coca Cola, Cisco, General Electric and Pepsi.