A political crisis is gripping Lebanon. It has almost completely paralyzed the constitutional institutions and is affecting the economy and the country’s social fabric. The decline is no longer confined to public finances and public debt, but for the third year in a row the fiscal deficit has grown alongside a rise in the debt-to-gross domestic product ratio. The decline is affecting citizens’ finances and standard of living.

The slow economic growth, the political crisis resulting from the inability of the politicians to reach a minimum understanding to spare the country the effects of the regional war in Syria and the spread of corruption and mismanagement are impoverishing the Lebanese, eating away at their wealth and pushing them to emigrate, in addition to exacerbating the structural imbalance of the social and economic environment.

In its last report of 2013, issued in late January, Credit Suisse estimated the net wealth per adult in Lebanon at $30,868 at the end of June 2013. This was $31,323 at the end of June 2012, which constitutes a decline of 1.5%. Net wealth per adult in Lebanon peaked at $35,615 at the end of 2007.

The report indicated that the amount of debt per adult rose to $9,858 at the end of June 2013, after it had reached $8,754 in June 2012. This is an indication of the dwindling net wealth per capita and the increase in debt as a result of the volatile political conditions and inability of the ruling class to rectify things and lead the country toward stability and the necessary reforms to spur growth.