The future of Lebanon’s economy could be hanging in the balance. Years of apparent mismanagement by a series of politicians who have failed to pursue reforms are taking their toll. Today, sizeable fiscal and current account deficits loom large at a time when deposit inflows from the diaspora, which fund these deficits, are beginning to stall.
Lebanon's plan to bring its budget deficit back into single digits is a step in the right direction, but it needs to regain market access to keep default concerns at bay, Fitch's rating analyst said on Thursday.
The fiscal goals set by Lebanon's government, which is vying to push through its 2019 budget this week, will help one of the world’s most indebted countries to reduce its ballooning public debt, spur economic growth and reduce the fiscal deficit.