It is generally known that the Lebanese economy extends to all five continents of the globe given that – by some estimates – more than 10 million Lebanese live outside the country. That is of course not counting what non-resident foreigners can contribute to the economy. All that has made the economy’s external sector the most vital part of the economy, perhaps to the detriment of the domestic economy and what it can contribute to the economic life of the country. This issue is taking a new importance now, as the country is embarking on a new economic course to get out of the severe crisis it is stuck in and to meet the frustrated economic hopes of its people. And it is especially interesting given the vulnerability of the economy to the availability of external sources, as in the current situation where these sources have gone into “sudden stop”.
What we would like to do in this spotlight is to shed some light on this matter. More specifically, we want to calculate the contribution of domestic and external sources to economic growth, and then draw some implications concerning the size of each contribution, in addition to tentative conclusions on how to stimulate the deficient domestic sources so as to enhance and deepen the productivity of the economy.
For the full report, kindly follow the link: Contributions to Growth in the Lebanese Economy