Report: falling commodity cost helps Lebanese economy
Lebanese economists said that the fall in oil prices and depreciation of the euro helped stimulate Lebanon's economy, local Daily Star reported Monday.
Optimistic analysis remains among Lebanese economists who believe that there are signs of improvement due to the fall of oil prices and euro value as 60 percent of Lebanon's import comes from Europe, reported Xinhua.
"There is no doubt that any reduction in raw material and oil helps reduce inflation and encourage companies to invest," economist Samir Naser told the daily.
The positive political and security development in Lebanon also encouraged the country's economy, he added.
"Things are looking very promising to Lebanon, let's hope this continues," Naser said.
Merchants expect the falling of oil and other imported raw material would help reduce the costs such as construction.
But, Fadi Abboud, president of Lebanese Industrial Association, said the cost of oil and raw material was still too high.
Electricity prices in Lebanon are still too high compared to regional states, the report said.
As-Safir Daily reported Monday that Lebanon is still out of the influence of the international financial crises.
Bank of Beirut announced at closure last week that its net profit has risen by 74 percent in 2008. The sharp raise in profit was attributed to successful operations.