Lebanon Pays a Price For Syrian Economic Collapse
The worrying economic situation in conflict-ridden Syria has sent tremors through Lebanon, a country that maintains strong economic ties with its eastern neighbor, writes Elie Hajj.
Economists in Lebanon are keeping a close eye on the Syrian economy, given the strong economic ties that exist between the two neighboring countries. The military confrontations and general unrest in Syria over the past two years have caused much worry amongst their neighbors to the west, with the Syrian lira losing 50-70% of its value. What’s more, estimates of losses related to infrastructure and the economy stand at about $200 billion.
Among other things, Lebanon’s deep concern over the fate of Syria can be traced back to the fact that it represents the only land bridge by which Lebanese exports can reach Jordan, Iraq and the Gulf states. Although maritime transport is always an option, it can be pricey in comparison and is not ideal for many goods, especially agricultural products.
Violet Bala, head of the economy section of Annahar newspaper, which has a special column devoted to the Syrian economy, told Al-Monitor that “Lebanon’s economy has been negatively affected by the armed conflict in Syria in many ways.” She pointed to the fact that 22% of the tourists visiting Lebanon had been Jordanians who would travel to Beirut by car or charter bus via Syria, however two years ago they stopped making the trip.
Gulf states have banned their citizens from traveling to Lebanon out of fear of the Syrian crisis spilling over into Lebanon as well as for other geopolitical reasons related to their standing disputes with Iran and Syria. This has forced Lebanese expatriates working in sectors related to the tourist industry to underwrite earnings, in sectors related to hotels, restaurants, cafes, car rental companies, telecoms, fuel and others.
