Lebanon’s Missing Link: Why Restoring Demand Is the Fastest Path To Recovery

Mouhamad Kobeissi

Today, Lebanon’s main obstacle to recovery is not competitiveness or infrastructure, but the collapse of aggregate demand. While the country is trying to restore the credibility of its governance by reforming the banking system, protecting depositors, and reintegrating into the international financial system, these measures alone cannot halt the economy’s short-term decline. Reform initiatives will find it difficult to translate into real economic stabilization unless purchasing power and employment are restored, and available productive capacity is properly used.
​

Read More