Lebanon

Lebanon, a country at the crossroads of three continents, is grappling with the most severe crisis in its modern history. The economic crisis, which sparked nationwide protests against government corruption in late 2019, has been compounded by the Covid-19 pandemic and the devastating Port of Beirut explosion in August 2020.

The Lebanese economy suffered a swift GDP contraction, and the Lebanese pound plummeted, leading to soaring inflation and a surge in poverty. The banking sector stopped lending and attracting deposits. Since then, political deadlock has further complicated efforts to implement critical reforms. Lebanon’s investment climate is hampered by funding constraints, bureaucratic hurdles, and outdated regulations.

Despite these challenges, the country’s agreement with Israel in 2022 to demarcate their maritime boundary could unlock underwater hydrocarbon resources. Furthermore, tremendous growth potential lies in Lebanon’s skilled workforce, tourism appeal, and the ability to attract international aid if the government commits to reforms.