Director Rafik Hariri Professor of the Practice of International Political Economy, HKS
Ricardo Hausmann is the founder and Director of Harvard’s Growth Lab and the Rafik Hariri Professor of the Practice of International Political Economy at...
Researchers at the Growth Lab unveil a four-point plan to address Lebanon’s economic crisis
Cambridge, MA — Harvard's Growth Lab has released a new report on Lebanon's struggling economy that revisits the origins of the crisis and proposes a comprehensive plan...
Lebanon’s current economic crisis ranks among the worst in recent history. GDP has collapsed by 38% in real terms. The Lebanese lira, which was fixed to the dollar in 1997, has lost more than 98% of its value on the parallel market. The government has defaulted on its debt, and depositors are unable to access their funds held at commercial banks. Consolidated public sector debt, including both government debt and commercial banks’ claims on the Banque du Liban (BdL), represents more than seven times the current GDP. Public services delivery has crumbled. In short, the country is undergoing a debt crisis, a banking crisis, a currency crisis, and a growth collapse. Four years into the crisis, a resolution remains elusive, and each passing day increases the economic and social burdens faced by the population.
Given the increasing cost of delaying a resolution, we propose a strategy for Lebanon’s economic recovery that addresses all the dimensions of the crisis while recognizing the need to rapidly kick-start the economic recovery.
Professor of International Economics, Geneva Graduate Institute
Ugo Panizza is the Professor of Economics and Pictet Chair in Finance and Development at the Geneva Graduate Institute of International and Development...
Policy Fellow, London School of Economics and Political Science Former Research Fellow, Growth Lab
Frank Muci is a Policy Fellow at LSE. He is an international economic development practitioner with experience advising governments in Latin America...
