|
Credit Suisse sees next to no GDP growth for Lebanon
Real estate news By Daily Star staff
Tuesday, October 16, 2007
Global finance and investment firm Credit Suisse forecast Lebanon's real GDP growth at 0.5 percent in 2007 and at 3 percent for 2008 compared to growth of 6.2 percent in 2007 and 5.9 percent in 2008 in Emerging Europe, the Middle East & Africa (EMEA). This is also compared to growth of 7.1 percent and 6.8 percent for emerging markets in 2007 and 2008, respectively. Lebanon's economic growth forecast was the lowest among 15 countries in the EMEA region for 2007 and the second lowest for 2008. The economic projections were reported in Lebanon This Week, the economic publication of the Byblos Bank Group.
Also, Credit Suisse forecast Lebanon's inflation rate at 4.5 percent in 2007 and 3 percent for 2008 compared to inflation of 6.7 percent in 2007 and 5.6 percent in 2008 in the EMEA region, as well as compared to inflation of 5.4 percent and 5.2 percent for emerging markets in 2007 and 2008, respectively. Lebanon's inflation rate projection was the 12th lowest in the EMEA region for 2007 and 2008. In parallel, Credit Suisse forecast Lebanon's government expenditures at 38.7 percent of GDP for 2007 and 35.8 percent of GDP for 2008 compared to 35.7 percent of GDP in 2007 and 35.8 percent of GDP in 2008 in the EMEA region, as well as compared to 28.6 percent of GDP and 28.7 percent of GDP for emerging markets in 2007 and 2008, respectively.
Lebanon's government expenditures were the fourth highest among 15 countries in the EMEA region for 2007 and seventh highest for 2008. Meanwhile, Fitch Ratings indicated that Lebanon's banking sector was among 28 banking systems that came in the 'low strength' category on its Banking System Indicator (BSI). The BSI is a measure of intrinsic banking system quality or strength, derived from Fitch's long-standing and current Individual Ratings for banks. It deliberately excludes potential support from shareholders or governments since the objective is to highlight systemic weakness that might trigger the need for such support.
Send tips or a Letter to the Editor to editor@updatere.com
|
