The International Monetary Fund cautioned Wednesday (September 13th) that although Lebanon's economy has shown resilience amid the influx of refugees from Syria, the country should rein in its sovereign debt, AFP reported.
"Lebanon's economy is known for its resilience and it has repeatedly managed to weather significant shocks," said Chris Jarvis, who led an IMF delegation to Beirut this week to review the nation's economy.
Syrian refugees now account for about a quarter of Lebanon's population, creating an "urgent need to place the economy on a sustainable path and halt the rise in public debt," Jarvis said.
He warned that "economic conditions remain challenging", and economic growth will be subdued this year, with a budget deficit leaving the country vulnerable and driving debt to 148% of gross domestic product (GDP) in 2016.
The IMF noted that Lebanon "has made political progress in recent months", including legislation that paved the way for the first parliamentary elections in eight years. But the country can improve growth through additional reforms to help the business climate.
