Overview: Severe factional infighting in 1989 has been destroying physical property, interrupting the established pattern of economic affairs, and practically ending chances of restoring Lebanon's position as a Mideast entrepot and banking hub. The ordinary Lebanese struggles to keep afloat in an environment of physical danger, high unemployment, and growing shortages. The central government's ability to collect taxes has suffered greatly from militia control and taxation of local areas. As the civil strife persists, the US dollar has become more and more the medium of exchange. Transportation, communications, and other parts of the infrastructure continue to deteriorate. Family remittances, foreign political money going to the factions, and a surprising volume of manufactured exports help prop up the battered economy.

GDP: $1.8 billion, per capita $690; real growth rate NA% (1985)

Inflation rate (consumer prices): 500% (1987 est.)

Unemployment rate: 33% (1987 est.)

Budget: revenues $50 million; expenditures $650 million, including capital expenditures of $NA (1987 est.)

Exports: $1.0 billion (f.o.b., 1987); @m5commodities--agricultural products, chemicals, textiles, precious and semiprecious metals and jewelry, metals and metal products; @m5partners--Saudi Arabia 16%, Switzerland 8%, Jordan 6%, Kuwait 6%, US 5%

Imports: $1.5 billion (c.i.f., 1987); @m5commodities--NA; @m5partners--Italy 14%, France 12%, US 6%, Turkey 5%, Saudi Arabia 3%

External debt: $935 million (December 1988)

Industrial production: growth rate NA%

Electricity: 1,381,000 kW capacity; 4,839 million kWh produced, 1,480 kWh per capita (1988)

Industries: banking, food processing, textiles, cement, oil refining, chemicals, jewelry, some metal fabricating

Agriculture: fruits, wheat, corn, barley, potatoes, tobacco, olives, onions; not self-sufficient in food; an illegal producer of opium poppy and cannabis for the international drug trade

Aid: NA

Currency: Lebanese pound (plural--pounds); 1 Lebanese pound (LL) = 100 piasters

Exchange rates: Lebanese pounds (LL) per US$1--530.47 (January 1989), 409.23 (1988), 224.60 (1987), 38.37 (1986), 16.42 (1985)

Fiscal year: calendar year

NOTE: The information regarding Lebanon on this page is re-published from the 1989 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Lebanon Economy 1989 information contained here. All suggestions for corrections of any errors about Lebanon Economy 1989 should be addressed to the CIA.