Lebanon trade deficit rises in first two months of 2011

31 March 2011

BEIRUT: Lebanon’s trade deficit continued to rise in the first two months of 2011 as exports fell by 8.2 percent compared to the first two months of 2010, the customs department said.

It added that the external sector started the year with an increase in overall trade activity.

However, this increase was triggered by a rise in imports, as exports witnessed a decline.

The figures indicated that the total value of imports and exports totaled $3.548 billion in the first two months of 2011, up by 14.2 percent relative to the same period of 2010 when it stood at $3.106 billion.

The report was published by Bank Audi Lebanon Weekly Monitor.

Exports fell by a yearly 8.2 percent in the first two months of 2011 and reached $601 million, compared to $655 million in the same period of the previous year.

“This indicates a slower demand for Lebanese products from abroad, which takes place within the context of a regional political turmoil that is negatively affecting consumer and investor sentiment in Arab countries, which are major importers of Lebanese products,” the report said.

Imports saw a yearly rise of 20.2 percent over the first two months of 2011, reaching $2.947 billion compared to $2.451 billion over the same period of 2010.

“It seems the first two months of 2011 witnessed a surge when it comes to consumption activity in Lebanon, as imports of consumer goods went up significantly, by a yearly 36.6 percent. However, imports of investment goods only rose by 2.1percent in the first two months of 2011 relative to the same period of 2010,” Audi said.

The increase in imports alongside a decline in exports resulted in a yearly widening of 30.6 percent in the trade deficit in the first two months of 2011 relative to the same period of the previous year to reach $2.346 billion.

The breakdown of Lebanese exports by country of destination in the first two months of 2011 indicates that the UAE was the major export destination with 9.8 percent of the total.

It was followed by Switzerland and Turkey with 8.8 percent each.

As for imports to Lebanon by country of origin, it showed the U.S. was the main source of imports with 13.6 percent of the total, followed by China with 8.0 percent, and Italy with 7.6 percent.

Lebanon’s primary export item in the first two months of 2011 was jewelry, which accounted for 27.8 percent of total exports. It was followed by base metals with 16.6 percent, and electrical equipment and products with 14.5 percent of total exports.

Mineral products, which accounted for 26.3 percent of total imports, retained the lion’s share of imports followed by electrical equipment and products with 9.6 percent, and transport vehicles with 6.3 percent of total imports. – The Daily Star

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