Fitch Solutions’ 2019 report tackled consumer and retail patterns in Lebanon from 2019-2023. Amid the recent hype regarding Lebanon’s 2019 budget, promised reforms, the country’s future business outlook and the political & international headwinds, Fitch’s report dissects the Lebanese retail and consumer market to analyze household spending and share a 5-year forecast on customer spending (or private household consumption), market demographics, and the major household characteristics. This study summarizes and highlights the main findings of the original report, adding some conclusions by BLOMInvest Bank at the end of the study.
Consumer spending patterns (private household consumption) are a key element to study in an economy. The Keynesian school of thought considers consumer spending as the single most important determinant of economic performance on the short-term. Consumer spending shapes and impacts the formulation of governments’ fiscal & monetary policies as well as the performance of businesses. In a nutshell, the amount of money spent by consumers impacts current and future growth prospects, while some of the main factors affecting consumer spending are: consumer confidence, inflation, demographics, household size, current income, expectations of future income and interest rates, among other parameters.
For the full report, kindly follow the link: Patterns in Lebanon’s Consumer Spending: 2019 – 2023