The United Nations Economic and Social Commission for Western Asia (ESCWA) revealed in a recent study, that sales of the private sector in Lebanon declined during the past year by 45 percent, compared to an annual rate, with 23 percent of the workforce in the sector being laid off.
This study, entitled “The Formal Private Sector in Lebanon in 2020 and the Bitter Reality,” is part of studies to assess the impact of the pandemic, which ESCWA is preparing to support Arab countries in their joint efforts to mitigate the effects of the health crisis. Since late 2019, the Lebanese economy has entered into a continuous decline in its indicators, which have been exacerbated by the collapse of the exchange rate of the lira, the disaster of the Beirut Port explosion last August, and the outbreak of the Coronavirus.
According to the study, the Lebanese economy shrank by 20 percent last year, compared to the previous year, following the decline in private sector activity, which dealt a severe blow to the gross domestic product and the tax revenues of the state treasury, which decreased by about 17 percent. The study expects that the contraction will worsen during this year unless the Covid-19 vaccine is distributed in a timely manner, and unless the necessary political and economic reforms are implemented.
The Corona outbreak has led to a decrease in the demand for full-time labor in small and micro-enterprises in which the bulk of the vulnerable groups work, especially in the construction, hotels, restaurants and manufacturing sectors, and women have also suffered more job losses.
ESCWA Executive Secretary Rola Dashti said, "Lebanon is required to put in place a rescue plan for micro, small and medium enterprises, to reduce unemployment and support investment, by supporting formal private sector companies to postpone debt repayment and tax exemption."
Source (London-based Arab Newspaper, Edited)
