Lebanon, Syria and Jordan

RGE's Q3 2010 Outlook

The improvement in macro conditions in the MENA region will cushion the relatively closed Levant countries, with investment, tourism and government spending the main growth drivers in Lebanon, Syria and Jordan in H2 2010 and 2011. High, albeit falling, interest rates in Lebanon continue to attract inflows to its banking sector, which is now supporting other asset markets. All three countries continue to have vulnerable fiscal positions, with high debt and deficit levels, leaving all of them—even Syria—vulnerable to volatile fuel and food import prices. While Lebanon has by far the highest debt and deficit levels, Jordan is set to have a fiscal drag in 2010. Inflationary pressures will be on the rise, especially in 2011, as the central banks maintain a loose monetary stance and the Levant’s economies grow further.

Read the Q3 2010 Levant Outlook