Economic Analysis

http://www.youtube.com/watch?v=TVJfKzydWN4

• Lebanon is a Middle Eastern country that shares its borders with Syria, Israel and the Mediterranean Sea.

• Lebanon is very mountainous

• Beqaa valley, which has very fertile soil is the source for agricultural products.

• In the past, Lebanon was considered the business capital of the world.

• The Lebanese economy is resilient, withstanding wars and invasions with Israel and dominating influence of Syria.

• Lebanon despite it all achieved 9% growth during the Great Financial Crisis.

• The urban Lebanese population is known for entrepreneurial enterprise.

• Tourism is the main contributor to the economy as well as the financial sector.

• 35% of the total workforce is employed in the service sector

Population

• Lebanon has an area of 10,452 sq. km. and a population of 4,140,289

Age Distribution

• 0-14 years: 22.5% (male 477,647/female 455,008) 
• 15-24 years: 18% (male 379,340/female 364,200) 
• 25-54 years: 41.9% (male 836,126/female 900,600) 
• 55-64 years: 8.4% (male 159,909/female 186,446) 
• 65 years and over: 9.2% (male 175,847/female 205,166) (2012 est.)

Economic Statistics and Activity

GDP (PPP)

• $61.4 billion
• 1.5% growth
• 6.7% 5-year
• compound annual growth
• $15,523 per capita

Inflation (CPI):  5.5%

FDI Inflow:  $3.2 billion

Personal Income per capita:  15,330

Average family income:  10%

Distribution of wealth:   28%

Minerals and Resources:  high-grade iron ore and lignite; building-stone quarries; high-quality sand, suitable for glass manufacture; and lime.

Surface transportation:  Lebanon has seven airports in the country. Five of the seven airports have paved runways. There are 43 kilometers (km) of gas pipelines. Railways extend for 401 km in Lebanon. Roadways measure 6,970 km in Lebanon which include 170 km of expressways. Lebanon has two ports and terminals which are in Beirut and Tripoli. These ports offer ports and terminals for the 33 different kinds of merchant marines.

   

Communication systems:  In Lebanon, approximately 714,000 households use a main line telephone in 2008. Cellular phones are also popular in Lebanon with 1.43 million people using a mobile phone. Individuals using the internet are also popular. Nearly 2.19 million users are online. Information is also broadcast over 15 television stations, 20 AM radio stations, 32 FM stations, and about 12 unlicensed radio stations. 

Working conditions:  As stated earlier, Lebanon’s workforce is about 1.481 million workers.  Of these 1.481 million workers, roughly 945,000 were foreign workers whom come from Syria, Asia, India, and Africa.  They are mostly unskilled and employed in areas such as construction, agriculture, industry, and households.  The government supports trade unions.  The typical work week is 48 hours.  Approximately 15,000 people work in the financial sector and manufacturing employs about 15% of the workforce.    

   

Principal industries:  banking, tourism, food processing, wine, jewelry, cement, textiles, mineral and chemical products, wood and furniture products, oil refining, metal fabricating

Foreign investment:  1.25%--3,793,230,000 (2010)

International trade statistics:  Exports:  $5.655 billion--Exports partners:  UAE 12.1%, Iraq 8.4%, Saudi Arabia 7.7%, Turkey 7%, Syria 6.7%, Switzerland 5.5% (2011)
Imports: $20.73 billion (2012)--Imports partners:  US 10.2%, Italy 9.3%, France 8.8%, Chain 8.2%, Egypt 5.3%, Germany 5.1%, Turkey 4% (2011)    

Trade restrictions:  Embargoes, ImportTaxes, Tariffs, Licensing, Custom Duties

Extent of economic activity not included in cash income activities:  Countertrades--Lebanon hold the monopoly on cigarettes and tobacco, and Foreign Aid 

Labor Force:  1,481

Inflation rates:  5.5%

Developments in Science and Technology

Current technology available:  computers, generators, tractors, and cell phones.  

Technological skills of the labor force and general population:  The labor force has low levels of education and there are gaps in terms of technical, cognitive, and non-cognitive skills that can compromise the expansion of high productivity sectors.  Around 44 percent of the labor force is unskilled, with 6 percent uneducated, 36 percent with only primary education and 26 percent with only secondary education.  Educated employees have skills that severely mismatch the needs of the economy.

Channels of Distribution

Retailers

Aishti:  Aishti has become a synonym for ultimate luxury in Lebanon.  Its founder Tony Salame achieved to bring together the top fashion brands including Prada, YSL, Dolce & Gabbana, Dior, and Fendi.

Patchi:  Nizar Choucair's passion for chocolate transformed into a new gift trend.  Today, Patchi owns more than 140 boutiques in more than 29 countries around the world.

ABC Group--ABC was the first retailer in Lebanon to offer fixed prices, to hire women and to advertise.  Today, ABC operates six branches around Lebanon (Achrafieh, Hamra, Zahle, Tripoli, Beaute and Dbayeh) and is a top shopping and freetime destination.

Wholesale middlemen

Al Maher Trading Est.:  Importers and wholesale distributors of textile fabrics for the clothing industry.

Maison Georgette, Lebanon:  Wholesalers of textiles, bags, cushions and other accessories in Lebanon and other countries.

Import/export agents

Salim Kaskas and Co.:  Importers and distributors of fashion fabrics for women's wear, haute couture, home decoration and furnishing.

Organza, Lebanon:  Manufacturers and exporters of a range of curtains.  Also, specializes in manufacturing and exporting comforters, bedspreads, sofa covers and other textiles.

Warehousing
Global Freight and Logistics:  reliable storage and warehousing service.

Global Dynamix:  International company that provides logistics solutions all over the world.  The company has its headquarters in Beirut, Lebanon.

Penetration of urban and rural markets

• Market size and potential for growth
• Costs for investments--from price offers to advertising, training and even processes and systems modifications to adapt to new strategy.
• Possible change in product positioning with all negative and positive implications
• Advantages for the whole product line and company from publicity or advertising to your competitors' reactions.

Media

Lebanon's broadcasting scene is developed, lively and diverse, and reflects the country's pluralism and divisions.

It was the first Arab country to permit private radio and TV.  The government has a say over who may operate stations and whether or not they can broadcast news.  Some outlets are owned by leading politicans.  Future TV and LBC claim a large share of the audience.  Al-Manar TV is operated by Hezbollah.  Take-up of satellite and cable TV is widespread.

There are dozens of private radio stations.  BBC Arabic and Radio France internationale are carried by partner stations.

Even though there are no censorship laws, curbs forbid the media from defaming the president or other heads of state.