Reforms 4. In order to signal their commitment to fiscal discipline, the authorities are committed to putting in place a budget for 2014 aimed at balancing essential spending needs with stability goals. 5. The fiscal impact of the Syrian crisis is extensive. The negative impact on investor and consumer confidence and the disruption in the trade routes for exports and imports of goods, tourism, and financial services are placing downward pressure on government revenues. Combined with rising demand for public services due to the large refugee influx, this is further
.00 per printed copy International Monetary Fund Washington, D.C. ©2014 International Monetary Fund Front Matter Page LEBANON SELECTED ISSUES June 12, 2014 Approved By Middle East and Central Asia Department Prepared by Mariusz Jarmuzek (FAD), and Najla Nakhle and Francisco Parodi (MCD). These Selected Issues Papers have benefitted from discussions with staff from the Banque du Liban and Ministry of Finance. Contents THE IMPACT OF THE SYRIAN CONFLICT ON LEBANON A. Introduction B. The Refugee Influx C. The
The Impact of the Syrian Conflict on Lebanon 1 The conflict in Syria is having wide-ranging effects on Lebanon. The refugee influx is unprecedented, stoking sectarian tensions, exacerbating already-precarious security conditions, and straining the economy. The paper analyzes the various transmission channels of the Syrian crisis—though quantification is hampered by the lack of reliable data — with particular focus on the impact on fiscal performance and labor markets; it also takes stock of international donor efforts to date. Absent additional
between the asylum application and the work permit granted to refugees from 9 to 6 months, in order to allow them to enter the labor market more quickly. Lastly, while it successfully managed to cope so far with the refugee influx, thanks also to the sound fiscal position, any renewed strong influx of refugees would likely put pressure on the country’s capacity to host.