In the 1950s, Lebanaon was famously known for celebrities such as Brigitte Bardot and Otoole. Unfortunately, this reign has been obstructed by the economic challenges it is facing. in fact, the global news report shows that the inflation has pushed to 200%. The rapid increase in inflation has been caused by insecurities in Lebanon, the covid pandemic, and the Russia-Ukraine war. Marwan Kheireddine, a lifelong resident and businessman of Lebanon, shares his view on the economic condition of the country and the tips that can lead to an economic U-turn.
Kheireddine is a banker and a financier. He graduated in 1993 from Columbia University with a master’s in business administration. Marwan now works as the chairman of AM Bank.
Food Insecurity in Lebanon
in 2020, Lebanon’s large grain silo was hit by a blast. This explosion led to the death of over 220 people, injury to over 6000, and damage to food. Marwan further reports that Lebanon imports more than 80% of the food it consumes. With the covid 19 crisis, food prices increased rapidly, affecting the country’s capability to import consumable goods. The Ukraine- Russian war disrupted the importation of food. Thomson Reuters Foundation previously reported that for a whole month, Lebanon’s supermarkets lacked bread for one month.
Due to economic chaos in Lebanon, the government sought the financial support of $3 from the International Monetary Fund. It was so unfortunate that their request was rejected.
The economic condition has negatively caused banks, including AM Banks, to suspend their membership in the association of Bank in Lebanon. The chairman of the AM Bank declared that the association has not been acting in the best interest of the depositors. He noted that it needed to pay more attention to its role of protecting the rights of depositors. Continue reading here.
What To Do
Marwan argues that the industrial sector can lead to an economic U-turn in the country if they were supported. Also, if the private sector were allowed to run freely and be repaid the money the government owes them, then the economic improvement would be noted quickly.