Lebanon, neighboring Syria and Israel, were faced with an unprecedented crisis, writes CNBC. It started last year, but has now been exacerbated by a pandemic coronavirus.
as of the end of may, the unemployment rate in Lebanon has reached 30 percent, inflation for food products — 190 percent in annual terms. More recent data yet, but since then the situation has worsened, economists say.
the Problems are compounded by widespread power interruptions. In most parts of the country electricity is supplied to four hours a day. Because of this, the main hospital of the capital, Beirut, was forced to postpone many operations.
against the background of the General crisis of the Lebanese pound has lost about 80 percent of the value, as investors have lost interest in local assets. Meanwhile, the country needs foreign capital inflows to service already issued debt and Finance increased budget expenditures, including social spending.
the Government is negotiating with the International monetary Fund for assistance of 10 billion dollars. One of the conditions is the large-scale reforms.
Former Advisor to the Lebanese Minister of Finance Henry Caul am confident that the country will only global changes. However, he fears that the situation may be the reason for the civil unrest that will spill over into revolution.