Macroeconomic Forecast Lebanon

We continue to see negative growth for 2006, and have pencilled in end-year real GDP contraction of -2%. Thereafter, we expect a pick-up to 3.5% in 2007. Considering that it will follow two years of low base growth, this is not particularly impressive, and reflects our view that Lebanon will 'muddle through', rather than rebound. Although it has huge economic potential, political divisions look

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