Beirut - Beirut Traders Association and Bankmed released the results of “Beirut Traders Association – Bankmed Investment Index,” for the fourth quarter of 2016. The index, which is backed by the technical support of the Central Administration of Statistics in Lebanon, aims at assessing the reality of the wholesale sector in Lebanon.
The index reflects the investment climate in Lebanon, shedding light on the commercial activity and overall economic situation, particularly the phase that preceded the presidential elections in Lebanon. The results for the fourth quarter of 2016 indicate a continued deterioration in the “Turnover Component” despite the positive sentiment that prevailed following the election of a new president and the formation of a new cabinet. However, the “Intention to Invest Component” was characterized by some relative positivity in light of the encouraging developments that occurred during this quarter.
The “Turnover Component,” which tackles the activity during the quarter under study, recorded a real decline of 2.21% in comparison with the fourth quarter of 2015. This drop is largely attributed to the continued reduction in the volume of orders placed by retail merchants during this period.
According to the published results, the Wholesale Sector of Household Electrical Equipment, the Wholesale Sector of Books, Magazines, Newspapers and Stationary, and the Wholesale of Dairy Products, Eggs, Oils and Fats, and the Wholesale of Pastry, Chocolate, Sweets, Jam and Kernels witnessed some improvement in their wholesale activity. On the other hand, the Wholesale Sector of Phones and Communication Equipment continued to witness a notable decline in its wholesale activity alongside the Wholesale Sector of Electrical Engines and Transformers, and the Wholesale Sector of Medical Equipment and Spare Parts, which also experienced a significant slump in their wholesale activity.
With respect to the “Intention to Invest Component,” the computed results reveal that some sectors have revealed an intention to increase their investments in view of the positive atmosphere that had been prevalent during this quarter. Nonetheless, a number of sectors remained vigilant and did not reveal a clear intention toward increasing their investments in the upcoming period.
The “BTA – Bankmed Investment Index” has become an important indicator of the activity in the commercial sector as it assists the caretakers in making educated decisions in their future investments.
© Press Release 2017
