- Title: Lebanese economy to grow 1.5-2 percent
- Date: 24th November 2016
- Summary: BEIRUT, LEBANON (NOVEMBER 24, 2016) (REUTERS) ****WARNING CONTAINS FLASH PHOTOGRAPHY*** PARTICIPANTS AT THE ANNUAL ARAB BANKING CONFERENCE (SOUNDBITE) (Arabic) LEBANON'S CENTRAL BANK GOVERNOR, RIAD SALAMEH, SAYING: "We expect in 2016 a growth between 1.5 percent and 2 percent, with the levels of inflation close to zero. The Central Bank will continue its policy of supporting the digital economy, and it has started to achieve results after only 3 years since passing the policy 331 (that supports startups). There is currently in the Lebanese market more than 800 start ups and this sector has created 6,000 jobs." VARIOUS OF PARTICIPANTS AT THE CONFERENCE (SOUNDBITE) (Arabic) LEBANON'S CENTRAL BANK GOVERNOR, RIAD SALAMEH, SAYING: "The election of president Michel Aoun and the appointment of the Prime Minister designate Saad Hariri will increase consumer and investor confidence, especially if a budget is approved and the constitutional institutions are revived in addition to the economic plans and aid for easing the burden of the Syrian war on Lebanon." VARIOUS OF PARTICIPANTS AT THE CONFERENCE (SOUNDBITE) (Arabic) SECRETARY GENERAL OF ARAB UNION BANKS, WISSAM FATTOUH, SAYING: "Because the Lira has remained stable today, we see the inflation at zero percent. On another hand, when there is financing by the banking sector and encouragement by the Central Bank, it leads to economic growth and this is the growth that the Central Bank governor was talking about.'' VARIOUS OF BEIRUT STREETS (SOUNDBITE) (Arabic) BEIRUT CITIZEN, ELIE GHANEM, SAYING: "We have been hearing for 20 years that things will get better. Like I said, one has to have positivity in their minds and to think that things will get better if they think positive. If it doesn't get better, then we will just have to pack our bags and leave.'' VARIOUS OF BEIRUT STREETS (SOUNDBITE) (Arabic) BEIRUT CITIZEN, ROZANA RBEIZ, SAYING: ''We can't judge now, it is too soon, it has only been a month. But we cannot live the same we lived before, we would need a miracle for that." VARIOUS OF BANNERS FOR RECENTLY ELECTED LEBANESE PRESIDENT MICHEL AOUN
- Embargoed: 9th December 2016 13:24
- Keywords: Lebanon Beirut finance economy central bank Riad Salameh
- Location: BEIRUT, LEBANON
- City: BEIRUT, LEBANON
- Country: Lebanon
- Topics: Economic Events
- Reuters ID: LVA00159T0H91
- Aspect Ratio: 16:9
- Story Text: Lebanese Central Bank Governor, Riad Salameh, said during a banking conference in Beirut on Thursday (November 24) that the country's economy is due to grow by 1.5 to 2 percent in 2016.
The growth figures are in line with ratings agency forecasts.
"We expect in 2016 a growth between 1.5 percent and 2 percent, with the levels of inflation close to zero," Salameh said.
Salameh added that the Central Bank's policy of supporting digital start ups has been fruitful, creating 6000 new jobs in the three years since the policy started.
"The Central Bank will continue its policy of supporting the digital economy, and it has started to achieve results after only 3 years since passing the policy 331 (that supports start ups). There is currently in the Lebanese market more than 800 start ups and this sector has created 6000 jobs," Salameh said.
Lebanon's economy has for years been hindered by regional unrest, including the war in neighbouring Syria, and by its own political crisis. But the election of President Michel Aoun this month after a two-and-a-half-year period without a president, and the expected formation of a new Lebanese government with Saad al-Hariri as prime minister, may help alleviate Lebanon's political deadlock.
Salameh said these were positive steps but that the economy needed measures like approving a fiscal budget which has not happened in more than 10 years.
He also called for revitalizing government institutions and increasing aid to Lebanon to help with the Syria refugee crisis.
Salameh also added that central bank reserves in September were at historically high levels and that bank deposits had risen at an annualised rate approaching five percent, which helped spur the growth.
One banker attending the conference said the Central Bank policy of keeping the Lebanese currency lira steady against the dollar helped to curb inflation.
"'Because the Lira has remained stable today, we see the inflation at zero percent. On another hand, when there is financing by the banking sector and encouragement by the Central Bank, it leads to economic growth and this is the growth that the Central Bank governor was talking about," Wissam Fattouh, Secretary-General of the Union of Arab Banks.
The Lebanese public took the news with cautious optimism.
"We have been hearing for 20 years that things will get better. Like I said, one has to have positivity in their minds and to think that things will get better if they think positive. If it doesn't get better then we will just have to pack our bags and leave,'' said Eli Ghanem, sat at a coffee shop in Beirut's Sassine Square.
Another resident said it was too early to judge but that Lebanon would need a miracle to return to its glory days.
"We can't judge now, it is too soon, it has only been a month. But we cannot live the same we lived before, we would need a miracle for that," said Rozana Rbeiz.
Ratings agency Fitch said in July it expected real growth in Lebanon's gross domestic product to remain lower than 2 percent in 2016.
Moody's said in the same month that it expected the economy to grow at a rate of 1.7 percent this year. - Copyright Holder: REUTERS
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