Lebanon’s private sector economy continued to contract in February, but at a softer pace, as weak demand and a sharp fall in output worsened as the country's economic crisis deteriorated with a further depreciation of its currency amid the coronavirus pandemic and political turmoil.
The BLOM Lebanon PMI index, which measures the strength of the private sector economy, edged up to 42.2 last month, from 41 in January. A reading above the neutral 50 mark indicates economic expansion while one below points to a contraction.
"The Lebanese private sector seems to have gotten a bit of a breather in February 2021," Ali Bolbol, chief economist and head of research at Blom Bank, said referring to a slight rise in the readings.
“All of output, new orders, and especially new export orders, witnessed declines that were less than before, while employment stabilised."
Though all were "positive developments" economic risks persist due to "the pessimistic sentiments concerning the future because of the disastrous political deadlock and instability”, Mr Bolbol added.
Lebanon is facing its worst economic crisis since its 1943 independence after defaulting on about $31 billion of eurobonds. The Lebanese pound has lost more than 80 per cent of its value against the US dollar, while inflation soared as high as 146 per cent in December 2020, according to the country's Central Administration of Statistics. Annual inflation reached 85 per cent in 2020.
Meanwhile talks with the International Monetary Fund for a $10bn bailout package have stalled amid political bickering and the country's economic woes were compounded following a massive explosion at the Port of Beirut in August that killed more than 200 people and devastated large parts of the capital.
Output across the Lebanese private sector fell last month as movement restrictions due to the pandemic curtailed economic activity. Lebanon recorded more than 380,000 infections and 4,805 deaths as of Wednesday, according to Worldometer that tracks the pandemic.
New orders received by Lebanese businesses as well as exports also dropped during the month, according to the report. Input prices, on the other hand, continued to rise in February.
Employment conditions in the country stabilised in February after falling continuously for 17 months.
But these improvements were beset by a pessimistic one-year business outlook by firms surveyed, which feared the country's political instability could lead to a prolonged economic downturn.
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
Women’s World T20, Asia Qualifier
UAE results
Beat China by 16 runs
Lost to Thailand by 10 wickets
Beat Nepal by five runs
Beat Hong Kong by eight wickets
Beat Malaysia by 34 runs
Standings (P, W, l, NR, points)
1. Thailand 5 4 0 1 9
2. UAE 5 4 1 0 8
3. Nepal 5 2 1 2 6
4. Hong Kong 5 2 2 1 5
5. Malaysia 5 1 4 0 2
6. China 5 0 5 0 0
Final
Thailand v UAE, Monday, 7am
The specs: 2017 GMC Sierra 1500 Denali
Price, base / as tested Dh207,846 / Dh220,000
Engine 6.2L V8
Transmission Eight-speed automatic
Power 420hp @ 5,600rpm
Torque 624Nm @ 4,100rpm
Fuel economy, combined 13.5L / 100km
The specs: 2018 Nissan Altima
Price, base / as tested: Dh78,000 / Dh97,650
Engine: 2.5-litre in-line four-cylinder
Power: 182hp @ 6,000rpm
Torque: 244Nm @ 4,000rpm
Transmission: Continuously variable tranmission
Fuel consumption, combined: 7.6L / 100km
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
Killing of Qassem Suleimani
Mohammed bin Zayed Majlis
The Settlers
Director: Louis Theroux
Starring: Daniella Weiss, Ari Abramowitz
Rating: 5/5
My Cat Yugoslavia by Pajtim Statovci
Pushkin Press
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
McLaren GT specs
Engine: 4-litre twin-turbo V8
Transmission: seven-speed
Power: 620bhp
Torque: 630Nm
Price: Dh875,000
On sale: now
FFP EXPLAINED
What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.
What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.
What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.
The biog
DOB: March 13, 1987
Place of birth: Jeddah, Saudi Arabia but lived in Virginia in the US and raised in Lebanon
School: ACS in Lebanon
University: BSA in Graphic Design at the American University of Beirut
MSA in Design Entrepreneurship at the School of Visual Arts in New York City
Nationality: Lebanese
Status: Single
Favourite thing to do: I really enjoy cycling, I was a participant in Cycling for Gaza for the second time this year
The Land between Two Rivers: Writing in an Age of Refugees
Tom Sleigh, Graywolf Press
SPECS
Toyota land Cruiser 2020 5.7L VXR
Engine: 5.7-litre V8
Transmission: eight-speed automatic
Power: 362hp
Torque: 530Nm
Price: Dh329,000 (base model 4.0L EXR Dh215,900)
