A sharp increase in consumer price inflation is “a potent illustration of the severity of Lebanon’s crisis”, which could deteriorate unless the government takes urgent action, according to emerging markets research company Tellimer.
Official figures published earlier this week showed a year-on-year increase in consumer price inflation from 56.5 per cent in May to 89.7 per cent in June as the value of the Lebanese pound continued to fall, causing the prices of food and other basics to rise.
Although Lebanon officially maintains its currency peg at 1,507.5 pounds to the US dollar, its value on the black market has declined by 75 per cent so far this year. The currency fell by 50 per cent from the end of May, according to Patrick Curran, a senior analyst at Tellimer Research, with the pound currently trading at about 8,200 to the dollar.
“Lebanon’s US dollar peg has effectively subsidised imports since its inception in 1997, allowing Lebanon to consume beyond its means, but hollowing out industry in the process,” Mr Curran said.
He said the “economy is, thus, extremely import-dependent” and cited the most recent gross domestic product figures from 2018 that showed imports accounting for about 40 per cent of the household consumption.
“This figure is even higher for certain key categories, with a 2016 UN report estimating that the country imports 65 per cent to 80 per cent of its foodstuff needs. This highlights the immediate humanitarian impact of the [pound’s] devaluation, which has prompted a mass shortage of basic supplies [such as] food, medicine and diapers,” Mr Curran said.
Lebanon faces its worst financial crisis since independence in 1943, and its economy has deteriorated after talks with the International Monetary Fund stalled, the Institute of International Finance said in a report earlier this month.
The country asked the fund for a $10 billion (Dh36.7bn) rescue package in May but has not been able to agree on the terms of the bailout.
Food price increases were the main driver of higher inflation, official statistics show, with a 247 per cent year-on-year increase in June. Despite subsidies on some basic goods such as wheat and medicines, inflation pass-through from the parallel exchange rate has been about 50 per cent this year, Mr Curran said, which suggests the government's estimate that inflation will average 53 per cent this year looks "increasingly unrealistic".
“Based on a 50 per cent inflation pass-through and [the pound] staying flat at 8,200 per US dollar through [to] year-end, we expect inflation to reach circa 190 per cent, year on year, in July and to average 110 per cent for the year – double the government’s forecast," Mr Curran said.
In a research note on currency pegs in the Mena region on Thursday, Fitch Ratings said Lebanon’s pound would probably force a “significant adjustment of the current account in the near term through compression of imports, but significant structural constraints will hamper the emergence of sustainable export sectors”.
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When: December 6-16
Where: Games to take place at Zayed Sports City in Abu Dhabi and Hazza bin Zayed Stadium in Al Ain
Defending champions: Real Madrid
MATCH INFO
Jersey 147 (20 overs)
UAE 112 (19.2 overs)
Jersey win by 35 runs
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Reform is a right-wing, populist party led by Nigel Farage, a former MEP who won a seat in the House of Commons last year at his eighth attempt and a prominent figure in the campaign for the UK to leave the European Union.
It was founded in 2018 and originally called the Brexit Party.
Many of its members previously belonged to UKIP or the mainstream Conservatives.
After Brexit took place, the party focused on the reformation of British democracy.
Former Tory deputy chairman Lee Anderson became its first MP after defecting in March 2024.
The party gained support from Elon Musk, and had hoped the tech billionaire would make a £100m donation. However, Mr Musk changed his mind and called for Mr Farage to step down as leader in a row involving the US tycoon's support for far-right figurehead Tommy Robinson who is in prison for contempt of court.
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Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
Rating: 3/5
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3ESmartCrowd%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2018%0D%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3ESiddiq%20Farid%20and%20Musfique%20Ahmed%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%20%2F%20PropTech%0D%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%20%3C%2Fstrong%3E%24650%2C000%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2035%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3ESeries%20A%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EVarious%20institutional%20investors%20and%20notable%20angel%20investors%20(500%20MENA%2C%20Shurooq%2C%20Mada%2C%20Seedstar%2C%20Tricap)%3C%2Fp%3E%0A
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Producer: Matchbox Pictures, Viacom18
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One star
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Tips for newlyweds to better manage finances
All couples are unique and have to create a financial blueprint that is most suitable for their relationship, says Vijay Valecha, chief investment officer at Century Financial. He offers his top five tips for couples to better manage their finances.
Discuss your assets and debts: When married, it’s important to understand each other’s personal financial situation. It’s necessary to know upfront what each party brings to the table, as debts and assets affect spending habits and joint loan qualifications. Discussing all aspects of their finances as a couple prevents anyone from being blindsided later.
Decide on the financial/saving goals: Spouses should independently list their top goals and share their lists with one another to shape a joint plan. Writing down clear goals will help them determine how much to save each month, how much to put aside for short-term goals, and how they will reach their long-term financial goals.
Set a budget: A budget can keep the couple be mindful of their income and expenses. With a monthly budget, couples will know exactly how much they can spend in a category each month, how much they have to work with and what spending areas need to be evaluated.
Decide who manages what: When it comes to handling finances, it’s a good idea to decide who manages what. For example, one person might take on the day-to-day bills, while the other tackles long-term investments and retirement plans.
Money date nights: Talking about money should be a healthy, ongoing conversation and couples should not wait for something to go wrong. They should set time aside every month to talk about future financial decisions and see the progress they’ve made together towards accomplishing their goals.
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AUSTRALIA SQUAD
Aaron Finch (captain), Ashton Agar, Alex Carey, Pat Cummins, Glenn Maxwell, Ben McDermott, Kane Richardson, Steve Smith, Billy Stanlake, Mitchell Starc, Ashton Turner, Andrew Tye, David Warner, Adam Zampa
Company profile
Name: Back to Games and Boardgame Space
Started: Back to Games (2015); Boardgame Space (Mark Azzam became co-founder in 2017)
Founder: Back to Games (Mr Azzam); Boardgame Space (Mr Azzam and Feras Al Bastaki)
Based: Dubai and Abu Dhabi
Industry: Back to Games (retail); Boardgame Space (wholesale and distribution)
Funding: Back to Games: self-funded by Mr Azzam with Dh1.3 million; Mr Azzam invested Dh250,000 in Boardgame Space
Growth: Back to Games: from 300 products in 2015 to 7,000 in 2019; Boardgame Space: from 34 games in 2017 to 3,500 in 2019
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