3. Lebanon – Debt Deficit: 134.41% of GDP
Lebanon has suffered from crisis for a long time. Public debt problem is not new. It only increased after the war ended in 1995. During the year of war, the country lost a lot of money.
The government failure in keeping expenses within the deficit margin between the country’s debt and the GDP is one of the main reasons why Lebanon is still pretty deep in the pit. The country suffers from decreasing GDP yet increasing public debt international rate.
The political and regional instability are only making it worse for Lebanon to solve its financial problems. However, it is not impossible for them to boost their economy growth in a long term process.
Until today, Lebanon’s public debt has reached 134.41% of its $50,028 Gross Domestic Product (GDP). The government hopes to handle this matter step by step starting from companies’ privatization.
