Where Are the $7B Remittances Spent?

 

The small country mothering a little more than 4 million nationals witness every year the departure of hundreds of its sons. Over the history, Lebanon saw huge flows of emigrants flying the country looking for political and economic safety, better living conditions, and superior job opportunities. This came at a huge cost as the country was gradually losing one of its most vital components: the young educated faction. The brain drain phenomenon that resulted and consequently the reduction of labor force promptly deteriorated the country’s output quality.

 

 

 

Besides the negative impact of the Lebanese outflows, expatriates are recognized for their direct and indirect contributions to the country’s economy. It is estimated that the total remittances over the period 1997-2010 constituted around 26.3% of Lebanon’s Gross Domestic Product (GDP), almost 6 billion dollars per year. In 2013, and according to the World Bank, expatriates’ remittances stood at $7.55B, around 17% of GDP, and are expected to touch the $7.67B in 2014, almost at 16.1% of GDP. However, the lack of accurate data leaves room to uncertainties and miscalculations when trying to estimate the full economic impact.

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2014-10- Where Are the $7B Remittances Spent

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