The economy of Lebanon is classified as a developing, lower-middle income economy. The nominal GDP was estimated at $19 billion in 2020, with a per capita GDP amounting to $2,500. In 2019 government spending amounted to $15.9 billion, or 23% of GDP. The Lebanese economy is service-oriented. Lebanon has a strong tradition of laissez-faire, with the country's constitution stating that'the economic system is free and ensures private initiative and the right to private property.
The following tables and chart will tell the change details in last 5-10 years:
Lebanon Distribution of workforce from the last 5 years:
Lebanon Distribution of GDP across economic sectors:
Here attached the last 10 years chart of Lebanon GDP: (amount in billion USD):
3 Sectors of the Economy – Agriculture, Industry and Services:
Agriculture is an important part in the Lebanon's economy. It employs almost 13.61% of the total workforce and contributed almost 5.29% in GDP.
Main crops include cereals (mainly wheat and barley), fruits and vegetables, olives, grapes, and tobacco, along with sheep and goat herding.
Major products in this Sector:
Wine: Lebanon is among the oldest sites of wine production in the world. The country is a net exporter of wine and has recorded trade surpluses since 2010. The surplus amounted to $12M in 2018, up from $3.8M in 2010. The biggest producers of wine in Lebanon are “Chateau Ksara”, “Chateau Kefraya”, “Chateau Musar”, and “Chateau St. Thomas”. These 4 players produce around 70% of the total wine market in terms of production. Overall, Lebanon produces 8 to 8.5M bottles (75cL each) of wine per annum. 50% of these 8M bottles, are exported to worldwide destinations and the other 50% go into local sales and thus constituting a portion of Lebanon's total wine consumption.
Agriculture Subsidy in Lebanon:
Lebanese farmers used to rely heavily on Syrian highly subsidized agricultural inputs which are no longer available since the start of the crisis in Syria. This has resulted in sharp increase in the costs of agricultural production. Also, a large percentage of the massive numbers of Syrian Refugees are located in the main agricultural areas of the North and the Bekaa, putting significant pressures on natural resources (farmlands, rangelands, and groundwater and forest resources).
Despite having the highest proportion of arable land in the Arab world with more than 200,000 hectares (494,000 acres), Lebanon's own agricultural sector has gone underfunded and underdeveloped for many years, hindered by a lack of modern equipment and inefficient production techniques. Even, Lebanese farmers unable to even cover their own operating costs as well.
Industry is an important part in the Lebanon' economy. It accounts for 12.83% of GDP and employed almost 22.46% of the workforce.
Major Industries in this Sector:
Gems and Precious Metals: In 2019 Lebanon exported US$1.2 billion worth of gems and precious metals which was almost 40.8% of total export in Lebanon. Gold covers almost one-fourth of the total export in this category. The top export destination of gems and precious metals are USA , United Arab Emirates, Saudi Arabia, Jordan and Turkey. While the import value in this category are US$20 million in 2019.
Service sector is an important part in the Lebanon's economy. It contributes almost 75.91% in the GDP and employed almost 63.93% of the total Lebanon's workforce.
Major Industries in this Sector:
Finance: The Lebanese banking industry is financially sound and stable. It plays key roles in the Lebanese economy where banks continue to dominate the financial system of the country and are major providers of credit to individuals and businesses. The robust banking industry in Lebanon is responsible for approximately eight percent of the nation's GDP (gross domestic product). Local banks in Lebanon are widely considered to be secure as well as high on liquidity. The majority of the financial deposits in Lebanese banks (a value of approximately $51 billion) come from foreign countries , the most significant portion being American dollars.
Tourism: The Tourism sector has traditionally been one of Lebanon's leading economic sectors, representing a major source of income and employment. The direct contribution of travel and tourism was valued at USD 3.8 billion in 2019, accounting for 7% of Lebanon's GDP. Total contribution of the sector was estimated at USD 10.4 billion or 19.1% of GDP in 2019, the second highest ratio in the Middle East. One of the largest employers in the country, as the tourism sector generated 144,300 direct jobs (or 6.7% of total employment) in 2019, out of 394,300 total jobs in the sector (or 18.4% of total employment).
Top Companies in Lebanon:
|4||Bank of Beirut||Banking|
|9||Rasamny Younis Motor||Automobile|
|10||Société Libanaise des Ciments Blancs||Construction Material|