Ten percent annual GDP growth
in the first two years of recovery

Economy and Trade Minister Bisat: Our aim is to double the size of the economy

Lebanon has the potential to achieve substantial economic growth thanks to the capabilities and strengths of its private sector and available opportunities on global markets, said Amer Bisat, Minister of Economy and Trade.

During a conference organized by LeadersClub – by Lebanon Opportunities, Bisat said: “Our aim is to double our GDP in the next few years. When recovery starts, an annual growth rate of ten percent is possible in the first two years. This could be followed by an annual growth of four to five percent in the next seven to eight years.” He said that those economies that had passed through severe economic and financial crises like Lebanon, were able to achieve very rapid economic growth after they started their recovery journey and the same could happen in Lebanon.

According to Bisat, there are a lot of opportunities that are conducive to this fast growth. He said: “The private sector has potential. Businesses have a healthy balance sheet. They are not indebted anymore and have undertaken drastic downsizing measures including layoffs and cost cutting. The private sector has also increased its liquidity thanks to its overseas relations and its ties to the Lebanese diaspora since a large number of companies have expanded their presence abroad especially in GCC countries, Europe, and the USA. If demand increases the private sector has the potential to invest and recover.”

According to the minister, many countries around the world have achieved significant economic growth in the last seven to eight years especially the USA and the Gulf region with which the Lebanese economy is interlocked. He said: “This means that there is a great potential for Lebanon to catch up since its economy grows when these economies grow. There is a huge gap between our economy and these economies especially the Gulf. Lebanon didn’t benefit from the boom that happened in the Gulf in the last seven to eight years. Our economy contracted sharply while their GDP surged.”

Bisat said the private sector is facing high production costs, with the exception of labor cost in addition to challenges related to the government such as red tape, an irrational tax system, low level of tax collection, lack of legal protection, corruption, and an inadequate infrastructure.

“Achieving full recovery cannot be completed within the short term of our government. But we can start it and put it on the right path. We will also start with ‘quick-wins’ which are measures that are simpler and faster to achieve, even if it means to surmount huge bureaucratic and legal impediments,” he said.