A demonstrator in Beirut protests against the fall in the value of the Lebanese pound and a growing economic crisis. Reuters
A demonstrator in Beirut protests against the fall in the value of the Lebanese pound and a growing economic crisis. Reuters
A demonstrator in Beirut protests against the fall in the value of the Lebanese pound and a growing economic crisis. Reuters
A demonstrator in Beirut protests against the fall in the value of the Lebanese pound and a growing economic crisis. Reuters

Business

Lebanon's business conditions improve to highest level in nine years

Despite the economic crisis, there was an increase in output and new orders

Massoud A Derhally
Massoud A Derhally

September 05, 2022

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Lebanon's private sector activity improved in August to the highest levels in more than nine years as output and new orders picked up.

The Blom Lebanon Purchasing Managers' Index rose to 50.1 last month, from 49.9 in July, its highest reading since June 2013.

A reading above the neutral level of 50 indicates growth, while one below it points to a contraction.

The higher reading is an "important achievement, even a milestone in the recent life of the Lebanese economy", said Aline Azzi, research analyst at Blominvest Bank.

The improvement was driven by strong tourist and expatriate spending, as well as possible deferred and pent-up spending by resident Lebanese, Ms Azzi said.

"This result should be put in context, as it reflects adjustment of the Lebanese economy towards a 'new normal', which is not surprisingly much lower than the 'old normal' prior to October 2019," she said.

"Only determined implementation of an economic and governance reform and recovery programme" in line with the International Monetary Fund proposed bailout package can "pull the economy from its lower new normal to a better and higher standing".

Despite business activity stabilising and backlogs of work, employment fell slightly and inflation persisted in the third quarter, as the US dollar strengthened and pushed up operating conditions, according to the survey.

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To protect margins, private sector firms in Lebanon raised their prices.

Lebanon recorded its 25th consecutive month of triple-digit inflation in July with the Central Administration of Statistics' Consumer Price Index rising to 168 per cent from the same month a year earlier. The index increased 7.4 per cent from June 2022.

Lebanon is expected to post the second-highest inflation rate in the world this year, trailing Sudan, according to Fitch Solutions.

Inflation in the country will average 178 per cent in 2022, up from about 155 per cent last year, Fitch said.

People queue outside a closed bakery, waiting for it to open, in Chiyah, Lebanon. Reuters
People queue outside a closed bakery, waiting for it to open, in Chiyah, Lebanon. Reuters
Another queue at a bakery in Khaldeh. The Lebanese Parliament has approved a $150m World Bank loan for wheat imports to address shortages in the country. Reuters
Another queue at a bakery in Khaldeh. The Lebanese Parliament has approved a $150m World Bank loan for wheat imports to address shortages in the country. Reuters
The loan will finance wheat imports for at least six months, alleviating acute bread shortages. Reuters
The loan will finance wheat imports for at least six months, alleviating acute bread shortages. Reuters
Lebanon has suffered from chronic scarcity of wheat and flour since its economic crisis began in 2019. Reuters
Lebanon has suffered from chronic scarcity of wheat and flour since its economic crisis began in 2019. Reuters
A man holds stacks of bread as he makes his way through a crowd of people queuing for bread outside a bakery in Beirut. Reuters
A man holds stacks of bread as he makes his way through a crowd of people queuing for bread outside a bakery in Beirut. Reuters
Subsidised Arabic bread consumed in most Lebanese households has become scarce. AFP
Subsidised Arabic bread consumed in most Lebanese households has become scarce. AFP
About 22 per cent of Lebanese households are food insecure, according to the World Food Programme, with that number likely to rise. AFP
About 22 per cent of Lebanese households are food insecure, according to the World Food Programme, with that number likely to rise. AFP
Soaring inflation, paired with a plunge in the value of the local currency, has badly affected the purchasing power of Lebanon's citizens. AFP
Soaring inflation, paired with a plunge in the value of the local currency, has badly affected the purchasing power of Lebanon's citizens. AFP
Long early-morning queues often form in front of bakeries and shops as customers race to purchase limited quantities of subsidised bread. AFP
Long early-morning queues often form in front of bakeries and shops as customers race to purchase limited quantities of subsidised bread. AFP
The limited availability of bread has caused tensions to frequently boil over in queues. Two people were wounded in Tripoli in mid-July after a gunfight over who was ahead in a bread queue. AP
The limited availability of bread has caused tensions to frequently boil over in queues. Two people were wounded in Tripoli in mid-July after a gunfight over who was ahead in a bread queue. AP
A woman uses a sickle to harvest wheat at a field in Houla village, near the border with Israel, southern Lebanon. Reuters
A woman uses a sickle to harvest wheat at a field in Houla village, near the border with Israel, southern Lebanon. Reuters
Russia’s invasion of Ukraine in February has also been detrimental, with the war there hindering the country’s ability to export wheat. About 80 per cent of Lebanon’s wheat came from Ukraine prior to the invasion. Reuters
Russia’s invasion of Ukraine in February has also been detrimental, with the war there hindering the country’s ability to export wheat. About 80 per cent of Lebanon’s wheat came from Ukraine prior to the invasion. Reuters
The Beirut port explosion in August 2020 destroyed the country’s grain silos and with it most of Lebanon’s wheat reserves. Reuters
The Beirut port explosion in August 2020 destroyed the country’s grain silos and with it most of Lebanon’s wheat reserves. Reuters

The country's economy collapsed after it defaulted on about $31 billion of Eurobonds in March 2020, with its currency sinking more than 90 per cent against the dollar on the black market.

"Looking ahead, businesses remained downbeat as concerns towards the domestic political environment clouded the economic outlook," the survey said.

Lebanon faces political deadlock over the formation of a new Cabinet nearly four months after parliamentary elections amid its worst economic crisis in decades.

Failure by politicians to agree on the formation of a new government will make the economic crisis worse and delay a $3bn IMF bailout programme that is contingent on a slew of reforms.

The fund's reform programme mandates the restructuring of the country's financial sector, implementing fiscal consolidation as well as restructuring of external public debt.

Reforming state-owned enterprises, particularly in the energy sector and strengthening governance as well as modernising the central bank legal framework and governance and accountability arrangements are other requirements.

The government also needs to establish a credible and transparent monetary and exchange rate system.

Securing IMF backing will help to unlock a further $11bn of assistance that was pledged at a Paris donor conference in 2018.

The biog

Favourite colour: Brown

Favourite Movie: Resident Evil

Hobbies: Painting, Cooking, Imitating Voices

Favourite food: Pizza

Trivia: Was the voice of three characters in the Emirati animation, Shaabiyat Al Cartoon

Other acts on the Jazz Garden bill

Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.

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Mohammed bin Zayed Majlis
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On Women's Day
The five pillars of Islam

1. Fasting

2. Prayer

3. Hajj

4. Shahada

5. Zakat 

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GAC GS8 Specs

Engine: 2.0-litre 4cyl turbo

Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900

The low down on MPS

What is myofascial pain syndrome?

Myofascial pain syndrome refers to pain and inflammation in the body’s soft tissue. MPS is a chronic condition that affects the fascia (­connective tissue that covers the muscles, which develops knots, also known as trigger points).

What are trigger points?

Trigger points are irritable knots in the soft ­tissue that covers muscle tissue. Through injury or overuse, muscle fibres contract as a reactive and protective measure, creating tension in the form of hard and, palpable nodules. Overuse and ­sustained posture are the main culprits in developing ­trigger points.

What is myofascial or trigger-point release?

Releasing these nodules requires a hands-on technique that involves applying gentle ­sustained pressure to release muscular shortness and tightness. This eliminates restrictions in ­connective tissue in orderto restore motion and alleviate pain. ­Therapy balls have proven effective at causing enough commotion in the tissue, prompting the release of these hard knots.

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Electoral College Victory

Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate. 

 

Popular Vote Tally

The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.

Most wanted allegations
  • Benjamin Macann, 32: involvement in cocaine smuggling gang.
  • Jack Mayle, 30: sold drugs from a phone line called the Flavour Quest.
  • Callum Halpin, 27: over the 2018 murder of a rival drug dealer. 
  • Asim Naveed, 29: accused of being the leader of a gang that imported cocaine.
  • Calvin Parris, 32: accused of buying cocaine from Naveed and selling it on.
  • John James Jones, 31: allegedly stabbed two people causing serious injuries.
  • Callum Michael Allan, 23: alleged drug dealing and assaulting an emergency worker.
  • Dean Garforth, 29: part of a crime gang that sold drugs and guns.
  • Joshua Dillon Hendry, 30: accused of trafficking heroin and crack cocain. 
  • Mark Francis Roberts, 28: grievous bodily harm after a bungled attempt to steal a £60,000 watch.
  • James ‘Jamie’ Stevenson, 56: for arson and over the seizure of a tonne of cocaine.
  • Nana Oppong, 41: shot a man eight times in a suspected gangland reprisal attack. 
One in nine do not have enough to eat

Created in 1961, the World Food Programme is pledged to fight hunger worldwide as well as providing emergency food assistance in a crisis.

One of the organisation’s goals is the Zero Hunger Pledge, adopted by the international community in 2015 as one of the 17 Sustainable Goals for Sustainable Development, to end world hunger by 2030.

The WFP, a branch of the United Nations, is funded by voluntary donations from governments, businesses and private donations.

Almost two thirds of its operations currently take place in conflict zones, where it is calculated that people are more than three times likely to suffer from malnutrition than in peaceful countries.

It is currently estimated that one in nine people globally do not have enough to eat.

On any one day, the WFP estimates that it has 5,000 lorries, 20 ships and 70 aircraft on the move.

Outside emergencies, the WFP provides school meals to up to 25 million children in 63 countries, while working with communities to improve nutrition. Where possible, it buys supplies from developing countries to cut down transport cost and boost local economies.

 

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UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

Updated: September 06, 2022, 3:35 AM`
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