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Lebanon's real GDP to shrink by 11 pct in 2021: study

BEIRUT
2021-11-05 02:53

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BEIRUT, Nov. 4 (Xinhua) -- Lebanon's real GDP is likely to contract by 11 percent in 2021 in light of the challenges facing the country and the continuing political and economic uncertainties, a study issued by Bank Audi reported on Thursday.

"While the cabinet formation represents by itself an important breakthrough after 13 months of standstill, real challenges continue to persist amid structural weaknesses, large financial imbalances and continuing political and economic uncertainties," the study said.

It added that Lebanon is witnessing a quasi-absence of investment, with investment aggregate at record lows unseen since the civil war.

It also noted that the government spending did not compensate for the lag in private spending given the intense public sector austerity requirements due to fiscal weaknesses.
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