Fiscal performance and the debt outlook

There has been quite a lot of concern regarding Lebanon’s recent fiscal performance  and its debt outlook. In its Article IV reviews for Lebanon, the International Monetary Fund has repeatedly alerted officials that the debt burden could derail the government from attaining its economic objectives and could be the prime risk source on financial stability, stressing that a sustained and balanced fiscal adjustment is essential. The election of a president and the appointment of a new prime minister in 2016 set the stage for a revitalization of Lebanon’s policy making framework. The passage of the 2017 budget, the first in 12 years, indicated a new policy direction and added to the overall confidence and the potential for improved economic performance. But fiscal performance was strongly affected by the crisis in Syria, which ushered in new challenges. The tax base stalled as economic growth nearly came to a halt, and the