Business Opportunities in Lebanon

Lebanon has a population of four million, according to International Monetary Fund (IMF) statistics. It was the 79Th largest market for U. S. exports in 2012, according to U. S. Department of Commerce statistics. The Lebanese Customs Authority reported that Lebanon?s total imports in 2012 reached approximately $21.3 billion, of which $2.376 billion (constituting 11 percent of the total) came from the United States. In 2012, the United States ranked as Lebanon?s number one trading partner ahead of Italy, China, France and Germany. According to Lebanese Customs statistics, major U. S. exports to Lebanon were mineral fuel and oil ($1.498 billion), vehicles ($218 million), machinery and electrical instruments ($170 million), products of chemical industries ($154 million), prepared foodstuffs, beverages and tobacco ($71 million), and vegetable products ($39 million). Real GDP growth is estimated to have slowed from seven percent in 2010 to 1.5 percent in 2011 and 2012, according to the IMF?s April 2013 World Economic Outlook, with nominal GDP estimated at $41.3 billion in 2012. The IMF forecasts that growth could reach two percent in 2013, with inflation projected at 6.7 percent. The Banque du Liban (BdL) projects real GDP growth will exceed two percent in 2013. Lebanon?s economy follows a laissez-faire model. Most of the economy is dollarized, and the country has few restrictions on the movement of capital across its borders. The Lebanese government?s intervention in foreign trade is minimal. Lebanon faces major financial challenges, notably a very high level of public debt and large external financing needs. Moreover, domestic tension and political and security instability, especially due to spillover effects from the Syrian crisis, are expected to continue to have a negative impact on the domestic business and economic environment.