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World Bank: Lebanon's economic prospects look bleak

Oct 31

World Bank: Lebanon's economic prospects look bleak

n its report titled Lebanon Economic Monitor, the World Bank revised its projection for 2018 real GDP growth downwards to 1 percent, amid the ongoing political crisis that has failed to yield a new Cabinet in over six months.

BEIRUT: The World Bank warned Tuesday of Lebanon's deceleration in economic activity up to this point, while arguing that the Central Bank's financial engineering tools can only do so much.

In its report titled Lebanon Economic Monitor, the World Bank revised its projection for 2018 real GDP growth downwards to 1 percent, amid the ongoing political crisis that has failed to yield a new Cabinet in over six months.

The Central Bank has continuously attempted to counter this trend, with the latest being a swap of Treasury bills held by BDL with newly MoF-issued Eurobonds in the amount of $5.5 billion, around $3 billion of which were subsequently sold (along with enticements) to banks, the report said.

This was done to raise BDL's foreign exchange reserves, which reached around $44 billion by the end of June.

annahar