Lebanon’s 2020 Budget Goal Is Not Remotely Credible

Explore what’s moving the global economy in the new season of the Stephanomics podcast. Subscribe via Pocket Cast or iTunes.

Lebanon is facing a political as well a financial crisis. Protests have erupted across the country as economic conditions continued to deteriorate. The government’s promise to cut the budget deficit to zero next year is an unrealistic and unnecessary response, according to research by Bloomberg Economics. And relying on the central bank to fund the deficit will probably impact its international reserves. These are already stretched and could be depleted within two years if Lebanon doesn’t get external support.