Beirut – Decypha: Due to the improvements in Lebanon’s political and economic conditions, the country is expected to see a boost in financial inflows by 20%, according to a report by Bank Audi.
The bank is basing its forecast on the double digit growth Lebanon saw in 2016 and the corrective measures adopted by the Central Bank.
Most of the foreign flow into the country is from of remittances from the Gulf Cooperation Council (GCC) and African countries.
The forecast is of significant importance to the Lebanese economy as it relies heavily on financial inflows. It is also projected to boost the total value of loans to private sector by $4 million, a 25% increase than the average of the previous 3 years.
“In parallel, we project a 7% growth in Money Supply for the year, driven both by domestic money creation and the positive change in net foreign assets. This moderate money supply growth is likely to yield a deposit growth of close to $10 billion in 2017 (15% more than the average of the past three years), with total banking sector deposits exceeding the threshold of $170 billion,” Audi’s report on fixed income in Lebanon read.
The report additionally forecasts a further boost in the support of the euro-bond market in Lebanon.
By Decypha Editorial Team
