Uncertain times ahead

There has been much speculation surrounding the implications of the presidential extension, especially given the reservations articulated by international leaders, the UN, and prominent members of the Arab League, including the GCC and Jordan. Lebanon’s economy is highly fragile and vulnerable to local and regional political developments. Historically, times of uncertainty led to economic downturns, with slowdown in production, exports, and tourism, with only local consumption supporting the economy. Today, however, local consumption has been hit by a drastic deterioration in the standard of living in the country, flaring concerns about the economic implications of the Lahoud extension, the potential departure of Hariri, changes in the relationships with Syria and the incumbent developments in foreign relations, especially with the US and Europe. While no crystal ball is available to foresee the new Lahoud era, and no logical reasoning can prove Lahoud’s claims that his new term will be “different,” Lebanon’s