Lebanese economy hammered by political crisis, debt

BEIRUT – It’s been nearly four months since Lebanon’s first parliamentary elections in nine years but Prime Minister-designate Saad Hariri hasn’t succeeded in forming a new Cabinet.

That’s mainly because political bickering between rival groups has increased pressure on the country’s economy.

Years of regional turmoil — worsened by an influx of 1.5 million Syrian refugees since 2011 — are catching up with the tiny, corruption-plagued Arab country.

Lebanon has the third highest debt rate in the world, currently standing at about $81 billion, or 152 per cent of the gross domestic product.

Many businesses are closing, some companies are laying off employees and even Lebanese living in the oil-rich Persian Gulf region have seen a drop in their income due to a drop in oil prices, translating into a decrease in remittances.