Issue 356 May 26-31, 2014
Economic Research & Analysis Department
LEBANON THIS WEEK Economic Indicators.....................1 Capital Markets............................1 Lebanon in the News....................2 Rising political uncertainties to weaken macroeconomic fundamentals, financing needs adequately covered Lebanon's sovereign ratings affirmed, outlook 'stable' Beirut is the least polluted city in the Arab world Reduction of telecom rates to support market, government ownership of mobile networks is an obstacle to growth Lebanon ranks in 11th place in the Arab world in ICT usage Trade deficit up 4% to $6bn in first four months of 2014
Charts of the Week Performance of Arab Stock Markets in the First Five Months of 2014 (% change) 51
50 45 40 35 30 25 20 15 10 5 0 -5 -10
31.9 27.6 22.4 21.5 16.9 16.6 15.1 3.9
3.6
3.2
0.8
0.3 -2
-3.4 -3.4 -3.6 -8.1
Du ba i Qa Le tar b Ab ano uD n ha bi Eg yp Ar Bah t a b ra M in Sa ark ud e i A ts ra M bia or oc T u co ni si Jo a rd an Sy ria Om an I Pa raq l es tin e Ku wa i Su t da n Li by a
In This Issue
Performance of the Beirut Stock Exchange* Usage of hotels and furnished apartments in Lebanon at 3.82 nights per person in 2013
130
126 124
125 Number of tourist arrivals down 12% in first four months of 2014 Number of real estate transactions up 9% in first four months of 2014 Customs receipts down 12% to $431m in first four months of 2014
124 120
125
123
120 115 110 108
105
103
105
103
101
105
104
Banque BEMO's dividend payout ratio at 35% for 2013 Arope's net income at $15.3m in 2013
4 -1 M ay
pr il A
14 Fe br ua ry M ar ch
nJa
be r
be r
ec em D
em
ov
ob er N
O ct
be r
t
em
ug us A
Se pt
Stock market activity up 42% to $170m in first five months of 2014
Ju ly
M ay
-1
3
Corporate Highlights ...................7
Ju ne
100
* Banque du Liban Market Value Weighted Index average monthly values Source: Local Stock Markets, Dow Jones Indices, Banque du Liban, Byblos Bank
Quote to Note "Despite the pick-up in market sentiment, a broader recovery is not yet in sight."
Bank of Beirut to raise capital by issuing priority shares
HSBC Bank, on the growth prospects of the Lebanese economy
Ratio Highlights............................8 Risk Outlook ................................8 Ratings & Outlook.......................8
Number of the Week 5:
Number of times the Lebanese Parliament tried and failed to elect a new president
Economic Indicators $m (unless otherwise mentioned) Exports Imports Trade Balance Balance of Payments Checks Cleared in LBP Checks Cleared in FC Total Checks Cleared Budget Deficit/Surplus Primary Balance Airport Passengers
2012 4,486 21,281 (16,795) (1,538) 14,976 56,044 69,787 (3,925) (109.87) 5,960,414
Dec 12 381 1,871 (1,490) 312 1,337 4,670 6,007 (132.36) 134.56 495,760
Sep 13 288 1,565 (1,277) 504 1,473 4,513 5,986 (668.16) (262.33) 539,297
Oct 13 391 1,757 (1,366) (794) 1,516 4,698 6,214 (228.92) 233.07 524,741
Nov 13 263 1,772 (1,509) (192) 1,451 4,584 6,035 (126.15) 340.22 407,869
Dec 13 243 1,797 (1,554) 534 1,562 4,728 6,290 (137.58) 171.23 510,367
% Change* (36.22) (3.96) 4.30 71.15 16.83 1.24 4.71 3.94 27.26 2.95
$bn (unless otherwise mentioned) BdL FX Reserves In months of Imports Public Debt
