18 June 2009

BEIRUT: Prime Minister Fouad Siniora on Wednesday projected Lebanon's economic growth to fall to 4 percent in 2009 from 8 percent in 2008 with a strong possibility that the growth could climb again to 6 percent at the end of the year. "Some preliminary indications for 2009 show a continued strong growth in the Lebanese banking sector and this sector are still the backbone of the economy. These indicators also show that the economy in general will continue to grow but at smaller pace compared to last year," Siniora said.

Siniora made these remarks during a workshop on reforms at the Grand Serail and in the presence of ministers Mohammad Shatah, Mohammad Safadi, Ghazi Zeaitier, Nassib Lahoud, Mohammad Khalifeh and Mohammad Qabbani.

Leading economic and financial figures also attended.

Siniora, who is expected to step down once a new government is formed after the Parliamentary elections which saw the triumph of March 14 Forces, said the growth may reach 6 percent at the end of the year amid expectations that Lebanon will have a strong tourist season this summer.

Analysts in general agreed that the outcome of the elections have relieved investors and western countries alike.

One of the positive indicators for the outcome elections was the large number of Arab tourists who flooded Lebanon in the days that followed the landmark event.

The premier stressed that if Lebanon reached the 6 percent economic-growth level then this was good news especially if the global credit crunch was taken into consideration.

"These indicators are considered high and unique compared to projected economic growths in many countries of world," he said.

Siniora reminded the audience that the G8 countries have warned against excessive optimism on the global economy.

"These countries have also pointed out serious threats descending on the markets and world economies. For this reason, the G8 has urged all countries to persevere in attempts to create economic incentives," Siniora said.

The prime minister praised the economic and administrative measures adopted by the Finance MinistryFinance Ministry in the past few years which strengthened economic and financial stability in the country.

"Despite the wars and security incidents, Lebanon's economy grew by one percent in 2005 and 2006," Siniora said, adding that the Lebanese economy recorded a growth of 7.5 percent in 2007 despite the deep political split in the country.

"In 2008, our exports went up and the balance of payments recorded an important surplus while inflation went down to 1.8 percent. In addition, the central bank's gross foreign currency reserves reached $23 billion," Siniora said.

It was interesting to note that Siniora suggested that the current Cabinet, with its odd political combination, agreed on ways to tackle the economic implications of the global financial crisis through the adoption of an integrated economic and development vision.

He added that the goal of the next government was to create more jobs and stimulate the economy.

The Cabinet last week endorsed the 2009 draft budget after a long delay which was due to the heated debate between March 14 and March 8. - The Daily Star

 

Community Comments (0) - Comment on this article

The opinions of the authors expressed herein do not necessarily state or reflect Zawya. Read our Comment Policy.

 

 

 

close x

Loading ...

 

close x

Report Abuse

Loading ...

 

 

close x

Loading ...