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"IMF raises Lebanon growth forecast to 8%"
Posted June 14, 2010 by Lindsay Roberts
By Mariam Karouny, Maktoob Business
On Tuesday, the International Monetary Fund (IMF) increased its 2010 economic forecast for Lebanon to at least 8%. The IMF commended prudent government policies which helped to maintain stability during the economic downturn. Capital inflows from Lebanese expatriates and Gulf capital flowing into the country’s real estate and banking sectors have also helped to moderate any effects from the financial crisis. Meanwhile, Lebanon’s central bank believes that inflation will remain between 4-5% for the year; and discussion of proposed plans for structural reforms and privatization could assist economic growth as well. In the meantime, the IMF suggests that Lebanon focus on its medium-term economic policy, inviting more public investment and social spending and creating a higher surplus to reduce the country’s debt. Any moves to impose a tax increase have been blocked.
