Higher economic growth projected

IMF says refugees will affect social situation

The local economy is forecast to grow by two percent this year after a growth of 1.5 percent in 2012, according to the IMF’s latest Regional Economic Outlook report (last updated in May). The country’s GDP growth would be the second lowest regionally after Sudan, and at par with Egypt. Moderate growth of some three percent is expected for oil importers in the MENA region in 2013.

Growing numbers of refugees from Syria will affect the social situation in Lebanon, the IMF said. Growth in local economy will likely pick up in 2014 to around four percent.

The inflation rate is expected to stand at 6.7 percent this year, slightly up from a rate of 6.6 percent for 2012. Inflation in 2014 is projected to fall to as low as 2.4 percent.

The overall fiscal deficit is expected to grow to 9.7 percent of GDP this year, the highest since 2008. It is then projected to drop to 8.9 percent of GDP in 2014.