Growth and Efficiency in the Lebanese Economy: A Tale from the Pre-crisis and Crisis Years

Source: CAS; WB; and author’s calculations. Also:  α = 0.6; β = 0.4 How well was the Lebanese economy prior to the crisis? To discerning observers, not very well. In fact, some would even argue that the pre-crisis years, behind the illusive veneer of growth, portended the impending crisis. We will explore this question in this note by also looking at how efficient the Lebanese economy was in the pre-crisis years. We will explore another important question but for the crisis years: what drove the colossal breakdown? Was it the breakdown in labor utilization, or the breakdown in capital accumulation, or the breakdown in the operating environment, or a combination of all three?

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https://blog.blominvestbank.com/wp-content/uploads/2026/01/Growth-and-Efficiency-in-the-Lebanese-Economy-A-Tale-from-the-Pre-crisis-and-Crisis-Years.pdf