The car market carries bigger indications than car sales and ownership. Analyzing the autos market, in a small economy like Lebanon especially in times of uncertainty reflects real sector performance linked to the trajectory of GDP growth, inflation and household spending. The dramatic drop of 79% in new cars registrations in November 2019 infers 3 economic realities: risk of company closures, employee layoffs and inhibited household consumption on durable goods (cars) amidst Lebanon’s current quagmire. Moreover, purchases of new cars unveil projections of shrinking purchasing power by H1 2020, as inflation is expected to substantially increase amid the developments in H2 2019.
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Car Market Slump in 2019