​In 2014, Lebanon’s trade gap was roughly USD 17.2 billion up from USD 765 million in 1974.

 

Reduced rates of production, the failure of Lebanese goods and products to compete internationally and the increase in imports driven by Lebanon’s free-market economy have all contributed to widening the Lebanese trade deficit. Prior to the 1975 Civil War, the deficit did not exceed 53%. The figure rose to 290% in 1980 and further to 585% after the end of the Civil War and the stabilization of the situation in 1995. Trade deficit hit a record high in 1997 at 1052% before declining to 772% in 2000 and further reduced to 322% in 2010. The gap rose once again in 2014, reaching 518% . Exports decreased from USD 4,433 million in 2012 to USD 3,313 million in 2014, i.e. down by 26%. Imports, on the other hand, registered a decline of 3.7% as illustrated in Table 1.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In 2012, the US ranked as Lebanon’s biggest export partner with exports amounting to USD 2,375 million. China replaced the US in 2013 exporting to Lebanon goods worth USD 2,283 million and maintained its leading position in 2014. 

 

Table 2 illustrates the top twenty countries from which Lebanon imported goods and materials over the past three years. Italy ranked second, France came either third or fourth and Germany fifth.

 

These twenty partners dominated 75% to 80% of Lebanon’s total trade.
 












 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In 2012, South Africa was the biggest importer from Lebanon at USD 864 million, followed by Switzerland at USD 547 million. South Africa was relegated to the second place in 2013 while Syria topped the list of importers. In 2014, Saudi Arabia ranked first followed by the United Arab Emirates. The top twenty importers illustrated in Table 2 below dominate 77% to 82% of the total Lebanese exports. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The amount of trade deficit or surplus varies depending on the trading country. China, for instance, is the country where trade balance registered its highest deficit. In 2014, Lebanon imported from China goods and commodities worth USD 2484 million while its exports were estimated at only USD 12 million only, which translated into a deficit of roughly USD 2472 million. Conversely, Lebanon had a positive trade balance with Syria at USD 118 million and Qatar at USD 64 million as illustrated in Table 4. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The huge increase in the cost of imports exhausts Lebanon’s hard currency and risks to threaten the fiscal stability and the balance of payments. Yet, there does not seem to be an alternative for the current trends in imports, especially amidst the sluggishness in the agricultural and industrial sectors and the declining productivity exacerbated by the lack of any rescue policies offered by the government.