Lebanon declares economic emergency

Lebanon’s political leaders declared what they called an economic state of emergency Monday following a meeting aimed at finding a solution to the country’s economic crisis, raising concerns that more taxes will be imposed. Lebanon has one of the world’s highest public debts in the world, standing at 150 per cent of gross domestic product.

Growth has plummeted and budget deficit reached 11pc of GDP as economic activities slowed and remittances from Lebanese living abroad shrank. The government hopes to bring down the budget deficit to 7.6pc of the GDP this year and to 6.5pc in 2020. The meeting at the presidential palace discussed measures to be taken in the near future and as part of the 2020 draft budget.

Prime Minister Saad Hariri told reporters after the meeting that the leaders have agreed on “declaring an economic state of emergency” and the formation of a committee that will follow on the situation. Hariri added that employment in the public sector will be frozen and work will begin for a new retirement system. He said officials will work on reducing the percentage of the debt through partnership between the public and private sectors.

President Michel Aoun said in a speech at the opening of the one-day session that everyone should make “sacrifices” in order to get one of the world’s most indebted countries out of its problems.