Economy - overview The 1975-91 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. Peace enabled the central government to restore control in Beirut, begin collecting taxes, and regain access to key port and government facilities. Economic recovery was helped by a financially sound banking system and resilient small- and medium-scale manufacturers. Family remittances, banking services, manufactured and farm exports, and international aid provided the main sources of foreign exchange. Lebanon's economy made impressive gains since the launch in 1993 of "Horizon 2000," the government's $20 billion reconstruction program. Real GDP grew 8% in 1994, 7% in 1995, 4% in 1996 and in 1997 but slowed to 2% in 1998, -1% in 1999, and -0.5% in 2000. Growth recovered slightly in 2001 to 1%. During the 1990s annual inflation fell to almost 0% from more than 100%. Lebanon has rebuilt much of its war-torn physical and financial infrastructure. The government nonetheless faces serious challenges in the economic arena. It has funded reconstruction by borrowing heavily - mostly from domestic banks. The re-installed HARIRI government has failed to rein in the ballooning national debt. Without large-scale international aid and rapid privatization of state-owned enterprises, markets may force a currency devaluation and debt default in 2002.

GDP purchasing power parity - $18.8 billion (2001 est.)

GDP - real growth rate 1% (2001 est.)

GDP - per capita purchasing power parity - $5,200 (2001 est.)

GDP - composition by sector
agriculture: 12%
industry: 21%
services: 67% (2000)

Population below poverty line 28% (1999 est.)

Household income or consumption by percentage share
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices) 0.5% (2001 est.)

Labor force 1.5 million (2001 est.)
note: in addition, there are as many as 1 million foreign workers (1999 est.)

Labor force - by occupation services NA%, industry NA%, agriculture NA%

Unemployment rate 18% (1997 est.)

Budget
revenues: $4.6 billion
expenditures: $8.9 billion, including capital expenditures of $NA (2001 est.)

Industries banking; food processing; jewelry; cement; textiles; mineral and chemical products; wood and furniture products; oil refining; metal fabricating

Industrial production growth rate NA%

Electricity - production 7.95 billion kWh (2000)

Electricity - production by source
fossil fuel: 96.86%
hydro: 3.14%
other: 0% (2000)
nuclear: 0%

Electricity - consumption 8.643 billion kWh (2000)

Electricity - exports 0 kWh (2000)

Electricity - imports 1.25 billion kWh (2000)

Agriculture - products citrus, grapes, tomatoes, apples, vegetables, potatoes, olives, tobacco; sheep, goats

Exports $700 million (f.o.b., 2001 est.)

Exports - commodities foodstuffs and tobacco, textiles, chemicals, precious stones, metal and metal products, electrical equipment and products, jewelry, paper and paper products

Exports - partners Saudi Arabia 11%, UAE 11%, Switzerland 7%, US 7%, France 5%, Iraq 4%, Jordan 4%, Kuwait 4%, Syria 4% (2000)

Imports $6.6 billion (f.o.b., 2001 est.)

Imports - commodities foodstuffs, machinery and transport equipment, consumer goods, chemicals, textiles, metals, fuels, agricultural foods

Imports - partners Italy 11%, France 8%, Germany 8%, US 7%, Switzerland 6%, China 5%, Syria 5%, UK 4% (2000)

Debt - external $8.4 billion (2001 est.)

Economic aid - recipient $3.5 billion (pledges 1997-2001)

Currency Lebanese pound (LBP)

Currency code LBP

Exchange rates Lebanese pounds per US dollar - 1,507.5 (January 2002), 1,507.5 (2001), 1,507.5 (2000), 1,507.8 (1999), 1,516.1 (1998), 1,539.5 (1997)

Fiscal year calendar year

NOTE: The information regarding Lebanon on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Lebanon Economy 2002 information contained here. All suggestions for corrections of any errors about Lebanon Economy 2002 should be addressed to the CIA.