Report by Theresia Rahme, English Adaptation by Karine Keuchkerian
With 13 presidents having held office in Lebanon prior to the election of Joseph Aoun, how did the economy perform under each of their terms?
Here is part two of this series:
Elias Sarkis (1976 – 1982)
Elias Sarkis' presidency was marked by difficult security and political conditions, but the economy did not collapse due to the influx of hard currency into Lebanese political parties and the Palestine Liberation Organization.
This changed with the Israeli invasion in 1982, at which point the Palestinian coalition left Lebanon, taking with it approximately $4 billion, according to banking industry estimates.
Bachir Gemayel (August 21, 1982 – September 14, 1982)
Bachir Gemayel promised to rebuild the state, fight corruption, and reduce the influence of militias in favor of the state. However, he was assassinated before officially assuming the presidency.
Amin Gemayel (1982 – 1988)
During Amin Gemayel's presidency, a monetary collapse began due to a shortage of the Central Bank of Lebanon's reserves, as well as arms deals that depleted the central bank's assets.
The bank became unable to "safeguard" the Lebanese lira. Slowly, wages began to decline, and by the late 1980s, the dollar reached around LBP 2,400, significantly decreasing purchasing power among the Lebanese.
These conditions accumulated and affected state revenues, leading to increased domestic borrowing.
Rene Moawad (November 5, 1989 – November 22, 1989)
Rene Moawad was elected president but was assassinated just 17 days after his election. At that time, Lebanon's economy was almost completely collapsed due to 14 years of civil war.
Elias Hrawi (1989 – 1998)
After the war ended in 1990, the dollar reached around LBP 3,000, and by 1992, it stood at LBP 2,880. The rate was gradually fixed until 1999 when it was set at LBP 1,507.
During Elias Hrawi's presidency, national debt increased due to a policy of excessive borrowing implemented by former Prime Minister Rafic Hariri, which raised government debt to 165% of GDP by 2004, making Lebanon one of the most indebted countries in the world.
Despite the debt, this period also saw large-scale reconstruction projects aimed at rebuilding infrastructure and attracting investment.
Emile Lahoud (1998 – 2007)
In 1995, Lebanon’s economic growth rate was 6.5%, but by 2002, it had fallen to 2%, according to the UNDP.
In the summer of 2006, the Israeli war caused material damage estimated at around $3.6 billion. As a result, the war contributed to increased public debt and worsened economic indicators.
Michel Sleiman (2008 – 2014)
During the global financial crisis, Lebanese banks attracted foreign deposits by offering high interest rates.
During this period, Lebanon experienced economic growth, increased foreign investment, and a thriving tourism sector.
However, by 2011, the Syrian war caused deep economic repercussions in Lebanon, with the most significant impact being the influx of refugees, which raised unemployment rates.
By 2014, Lebanon's public debt had increased significantly, reaching about $64 billion. The budget deficit continued due to high government spending and the failure to implement structural economic reforms.
Michel Aoun (2016 – 2022)
During Aoun's presidency, banks offered interest rates as high as 20%, which ultimately destroyed the Lebanese economy and discouraged investment.
Due to corruption, political quotas, and the accumulation of public debt, the 2019 October Revolution broke out, with Lebanese citizens demanding the resignation of then-Prime Minister Saad Hariri.
From that point, the Lebanese lira began to collapse, losing 90% of its value, which led to a financial and banking crisis, with depositors’ funds frozen.
Despite this, no reforms were implemented to reduce public debt; instead, it doubled, and Lebanon defaulted on its Eurobond payments.
Check also:
Tracking economic shifts in Lebanon: A review of 13 presidential terms – Part 1