The latest foreign trade statistics issued by the Lebanese Customs Authority for the fourth quarter of 2019 showed that net imports shrank by 18.4%, along with exports growth by 22.8%, which led to a decrease in the trade deficit by 26.0%, which is likely to continue and develop more in the coming months.
Lebanon is experiencing an acute economic crisis, and harsh measures on the part of Lebanese banks which have been reflected in the reality of import from abroad. On this basis, the new cabinet, which is expected to gain the confidence of the Parliament, is awaiting many challenges, most notably stimulating the local production at the expense of imports by providing incentives for the sectors that produce substitutes for imported and export-oriented products.
During the whole of 2019, the external sector witnessed a relative decrease in the trade deficit of 8.9% compared to 2018, as it decreased from $17.0 billion to $15.5 billion. This decrease in the trade deficit was the result of a strong increase in exports by 26.5%, in addition to a relative decrease in import activity by 3.7%. Accordingly, the ratio of exports to imports reached 19.4% during 2019, up from 14.8% compared to 2018.
Source (Economic Bulletin Website, Edited)
