PO AE
09836-0002
telephone: [961] (1) 402200, 403300, 416502, 426183, 417774
FAX: [961] (1) 407112

Flag: three horizontal bands of red (top), white (double width), and
red with a green and brown cedar tree centered in the white band

@Lebanon:Economy

Overview: The 1975-1991 civil war seriously damaged Lebanon's economic
infrastructure, cut national output by half, and all but ended
Lebanon's position as a Middle Eastern entrepot and banking hub. A
tentative peace has enabled the central government to begin restoring
control in Beirut, collect taxes, and regain access to key port and
government facilities. The battered economy has also been propped up
by a financially sound banking system and resilient small- and
medium-scale manufacturers. Family remittances, banking transactions,
manufactured and farm exports, the narcotics trade, and international
emergency aid are the main sources of foreign exchange. In the
relatively settled year of 1991, industrial production, agricultural
output, and exports showed substantial gains. The further rebuilding
of the war-ravaged country was delayed in 1992 because of an upturn in
political wrangling. In October 1992, Rafiq HARIRI was appointed Prime
Minister. HARIRI, a wealthy entrepreneur, announced ambitious plans
for Lebanon's reconstruction which involve a substantial influx of
foreign aid and investment. Progress on restoring basic services is
limited. Since Prime Minister HARIRI's appointment, the most
significant improvement lies in the stabilization of the Lebanese
pound, which had gained over 30% in value by yearend 1993. The years
1993 and 1994 were marked by efforts of the new administration to
encourage domestic and foreign investment and to obtain additional
international assistance. The construction sector led the 8.5% advance
in real GDP in 1994.

National product: GDP - purchasing power parity - $15.8 billion (1994
est.)

National product real growth rate: 8.5% (1994 est.)

National product per capita: $4,360 (1994 est.)

Inflation rate (consumer prices): 12% (1994 est.)

Unemployment rate: 35% (1993 est.)

Budget:
revenues: $1.4 billion
expenditures: $3.2 billion (1994 est.)

Exports: $925 million (f.o.b., 1993 est.)
commodities: agricultural products, chemicals, textiles, precious and
semiprecious metals and jewelry, metals and metal products
partners: Saudi Arabia 21%, Switzerland 9.5%, Jordan 6%, Kuwait 1