Lebanese Economy

The US dollar is dropping in value. Given that the Lebanese Lira is pegged to the dollar, this could be a fortunate development for Lebanese industrialists.

Lebanese exports would be cheaper for international consumption, creating greater demand.

Unfortunately, Lebanese industry was destroyed during Hezbollah's summer war. Investors are unlikely to build or rebuild given that Moody's has further downgraded Lebanese bonds.

Since Lebanon imports more than it exports (and many of these imports come from the Euro-zone), the drop in the dollar means that products will be even more expensive. And Lebanese tariffs aren't helping lower the prices.

Of course, Syrian products aren't heavily taxed crossing the border, and they are cheaper (although often of lesser quality) than European goods. So, more money will probably flow to Syria, which supported Hezbollah's war that destroyed Lebanese industry.

Instead of working to increase investment in Lebanon, the businesses, banks, and industrial organizations are calling for a national strike in support of the International Tribunal. Instead of petitioning other countries for funds and working to create a better and less restrictive business environment, our banker Prime Minister is busy brokering deals between supporters of violence and supporters of justice.

Lebanon moves from crisis to crisis, as the youth continue to move abroad to seek employment opportunities.