The 1975-91 civil war seriously damaged Lebanon's economic infrastructure, cut national output by half, and all but ended Lebanon's position as a Middle Eastern entrepot and banking hub. Peace enabled the central government to restore control in Beirut, begin collecting taxes, and regain access to key port and government facilities. Economic recovery was helped by a financially sound banking system and resilient small- and medium-scale manufacturers. Family remittances, banking services, manufactured and farm exports, and international aid provided the main sources of foreign exchange. Lebanon's economy has made impressive gains since the launch in 1993 of "Horizon 2000," the government's $20 billion reconstruction program. Real GDP grew 8% in 1994, 7% in 1995, 4% per year in 1996 and 1997 but slowed to 2% in 1998, -1% in 1999, and 1% in 2000. Annual inflation fell during the course of the 1990s from more than 100% to 0%, and foreign exchange reserves jumped from $1.4 billion to more than $6 billion. Burgeoning capital inflows have generated foreign payments surpluses, and the Lebanese pound has remained very stable for the past two years. Lebanon has rebuilt much of its war-torn physical and financial infrastructure. Solidere, a $2-billion firm, has managed the reconstruction of Beirut's central business district; the stock market reopened in January 1996; and international banks and insurance companies are returning. The government nonetheless faces serious challenges in the economic arena. It has funded reconstruction by tapping foreign exchange reserves and by borrowing heavily - mostly from domestic banks. The newly re-installed HARIRI government's announced policies fail to address the ever-increasing budgetary deficits and national debt burden. The gap between rich and poor has widened in the 1990s, resulting in grassroots dissatisfaction over the skewed distribution of the reconstruction's benefits.
Industry:
banking; food processing; jewelry; cement; textiles; mineral and chemical products; wood and furniture products; oil refining; metal fabricating
Ethnicgroups:
Arab 95%, Armenian 4%, other 1%
Yellow fever:
A yellow fever vaccination certificate is required from travellers coming from infected areas.
