Everything you need to know about Lebanon’s financial and economic crisis – ZAWYA

Everything you need to know about Lebanon’s financial and economic crisis – ZAWYA

A woman walks outside Lebanon's Central Bank in Beirut, Lebanon August 6, 2018.. As economic scenarios are getting worse in Lebanon, ratings agencies downgraded the sovereign's ratings pointing to the urgent need of debt restructuring.. A likely default on its obligations could force ratings agencies worldwide to downgrade Lebanon's sovereign ratings further or change the outlook on the country and its currency.. A sharp slowdown ensued in receipts from tourism, remittances, and other capital inflows.. The wide external current account deficit was partly the product of an overvalued currency, which encouraged higher imports and private consumption.. Statistics from the Association of Banks suggests that Lebanon's public debt has risen to a record level of about $90 billion.. The Lebanese economy has entered its third consecutive year of negative growth.. In the period 2011-2019, real GDP growth averaged 0.5 percent, the current account deficit exceeded 21 percent of GDP, and the fiscal deficit 9 percent of GDP.. Public debt increased to unsustainable levels, rising from 131 percent of GDP in 2012 to 164 percent of GDP at end-2019..