Navigating Investment Challenges in a Struggling Economy

Navigating Investment Challenges in a Struggling Economy

Let's say you're a millionaire and decide to start a new project.

Would you dare to invest a single dollar in a country like Lebanon with disastrous roads, internet, and electricity?

Logically, these services are the minimum we need if we want to start moving away from collapse because, if the state improves these services, it will be able to attract new projects, increase treasury funds, and create job opportunities in the country.

But as usual, the reality is completely disconnected from this logic.

Investment allocations represent less than 9% of the total expenses in the new budget in a country like Lebanon, which experts say needs at least double that number.

Just scroll to see how investment allocations are zeroed out for this year: from port construction, road rehabilitation, completing highways, preparing IT systems and buildings for public schools, water and electricity works, and many others.

In contrast, 86% of the expenses are current expenditures that neither bring projects nor stimulate the economy. More than half of these are salaries and wages of public sector employees, in addition to consumption expenses such as office rentals, office supplies, clothing, and others.

Why are investment projects so few?

According to