LBN Lebanon profile

Lebanon operates under a confessional power-sharing framework that binds state functions to sectarian identity. This design creates chronic governance gridlock, weak institutions, and limited accountability. Public agencies suffer from patronage, inefficiency, and leakage of resources, while reforms are stalled by political bargaining and external influence. Security, budget, and civil administration lack coherence, leaving the state unable to deliver consistent services or enforce policy across domains.

Colonial history Under French mandate from 1920 to 1943
Former colonizer France
Government type Parliamentary democratic republic
Legal system Civil law, with Islamic law influencing personal status issues
Political stability Relatively unstable, with periodic crises and civil unrest

The economy remains fragile, with policy instability and financial sector fragility undermining confidence and investment. Dependence on imports, tourism, and remittances makes the economy vulnerable to shocks and external contagion. The industrial base is limited, logistics costs are high, and governance weaknesses deter private sector development. Basic services and energy provision are unreliable, constraining productivity and long-term growth.

Currency name Lebanese pound
Economic system Market-based economy
Informal economy presence Significant presence, contributing to overall economic activity
Key industries Banking and finance, Tourism, Agriculture, Real estate
Trade orientation Export-oriented, with significant trade in services, agriculture, and textiles

Lebanon features a narrow coastal strip, steep terrain, and an inland agricultural corridor that create uneven development and exposure to risk. The country faces acute environmental pressures, including waste mismanagement, water scarcity, and air and soil pollution, compounded by climate change effects. Transboundary tensions and regional instability heighten risk, while urban planning and land use often lag behind needs, increasing vulnerability to disasters.

Bordering countries Syria, Israel
Climate type Mediterranean
Continent Asia
Environmental Issues Deforestation, pollution, waste management
Landlocked No
Natural Hazards Earthquakes, landslides, flooding
Natural resources Water, arable land, timber, minerals, and hydropower
Terrain type Mountainous and coastal plains

Society is deeply segmented along sectarian lines, influencing access to resources, opportunities, and political influence. A large and sustained presence of refugees places pressure on local services and social cohesion. Inequities in education, health care, and living standards persist, with rural and marginalized communities bearing the brunt. Civil liberties face challenges in practice, and gender equality progress is uneven, hampered by cultural norms and gaps in policy enforcement.

Cultural heritage Rich historical and multicultural influences, known for its cuisine, music, art
Driving side Right
Education system type Mixed public and private system, with a high literacy rate
Ethnic composition Arabs, Armenians, Kurds, Greeks, Others
Family structure Patriarchal with a strong emphasis on extended family
Healthcare model Mixed private and public healthcare system
Major religions Islam, Christianity
Official languages Arabic, French

Critical infrastructure shows persistent under investment and reliability problems, especially in energy, water, and urban transport. Electricity shortages and grid instability disrupt daily life and business operations, while transportation networks suffer from congestion and insufficient maintenance. Trade infrastructure, including ports and airports, requires modernization to support competitiveness. Telecommunication networks provide basic connectivity but face capacity, resilience, and governance challenges, and the broader innovation ecosystem remains hampered by governance, financing, and skills gaps.

Internet censorship level Moderate
Tech innovation level Emerging, with a growing startup ecosystem
Transport system type Underdeveloped infrastructure with reliance on road transport

Development indicators

Indicator Year Value Rank 5Y Rank Change
Military expenditure (current US$) 2023 241,290,151 115 +64
Political Stability and Absence of Violence/Terrorism 2023 -1.52 179 -7
Regulatory Quality 2023 -1.01 170 +40
Rule of Law 2023 -1.17 174 +20
Birth rate, crude (per 1,000 people) 2023 16.1 97 0
Death rate, crude (per 1,000 people) 2023 5.96 146 -21
Exports of goods and services (% of GDP) 2023 30.6 104 -46
GDP per capita (current US$) 2023 3,478 141 +46
GDP per capita, PPP (current international US$) 2023 12,575 125 +50
High-technology exports (current US$) 2023 98,096,541 83 -10
Hospital beds (per 1,000 people) 2021 2.73 24 -35
Imports of goods and services (% of GDP) 2023 73.7 25 -51
Inflation, consumer prices (annual %) 2024 45.2 4 -56
Life expectancy at birth, total (years) 2023 77.8 69 +12
Mortality rate, under-5 (per 1,000 live births) 2023 18.3 79 -24
Net migration 2024 -17,267 165 -44
Population, total 2024 5,805,962 115 +2
Prevalence of undernourishment (% of population) 2022 9.6 54 -18
Renewable energy consumption (% of total final energy consumption) 2021 6.8 140 -6
Foreign direct investment, net inflows (% of GDP) 2023 3.26 65 +27
Current account balance (% of GDP) 2023 -28.1 166 -12
Level of water stress: freshwater withdrawal as a proportion of available freshwater resources 2021 58.8 31 +2
Total greenhouse gas emissions excluding LULUCF per capita (t CO2e/capita) 2023 4.27 101 +23
Current health expenditure (% of GDP) 2022 5.74 110 +57
Domestic general government health expenditure per capita, PPP (current international US$) 2022 224 128 +55
Suicide mortality rate (per 100,000 population) 2021 0.7 173 0
Individuals using the Internet (% of population) 2023 83.5 58 +19
Control of Corruption 2023 -1.23 175 +1
Government Effectiveness 2023 -1.58 187 +40

Demography and Health

Lebanon’s population was about 5.806 million in 2024, with a small negative net migration of roughly 17 thousand people, indicating continued outward movement that can influence labor markets, demographics, and urban dynamics. The birth rate stood at 16.1 per 1,000 people in 2023, while the crude death rate was 5.96 per 1,000 in 2023, producing a modest natural increase in population. Life expectancy at birth reached 77.8 years in 2023, suggesting substantial longevity despite macroeconomic strain. Under-5 mortality remained relatively high at 18.3 per 1,000 live births (2023), signaling ongoing child health and access-to-care challenges despite overall longevity gains. The internet continues to permeate society, with 83.5% of the population using the Internet in 2023, reflecting strong digital connectivity that can support health information channels and telemedicine initiatives. Health financing remains constrained: current health expenditure was about 5.74% of GDP in 2022, and domestic general government health expenditure per capita, PPP, stood at 224 international dollars (2022), indicating limited fiscal capacity to scale health services even as life expectancy remains favorable. Hospital beds per 1,000 people were 2.73 in 2021, highlighting relatively constrained hospital capacity relative to population needs. Nutritional vulnerability persists, with 9.6% of the population undernourished (2022). Public health outcomes are influenced by broader governance and economic conditions, including high inflation and governance indicators, underscoring the interlinkages between health, economy, and institutions. Suicide mortality was low at 0.7 per 100,000 in 2021. Overall, Lebanon shows notable health achievements alongside gaps in health system capacity and nutrition that warrant sustained investment and social protection.

Economy

Lebanon’s GDP per capita was 3,478 current US$ in 2023, with GDP per capita at purchasing power parity around 12,575 international US$, illustrating a sizable gap between local prices and international cost structures. The inflation rate surged to 45.2% in 2024, signaling extreme macroeconomic volatility that erodes purchasing power, deters investment, and complicates budget planning for households and firms. The structure of the economy shows exports of goods and services at 30.6% of GDP in 2023, while imports accounted for 73.7% of GDP, underscoring a substantial import dependency and exposure to external price shifts. High-technology exports totalled about 98 million USD in 2023, indicating the presence of knowledge-intensive segments amid an otherwise import-reliant economy. The country hosts a diversified but modest export base with room to deepen value-added sectors. External balances are challenging: the current account deficit was 28.1% of GDP in 2023, reflecting large trade and service gaps that depend on external financing to sustain demand. Net foreign direct investment inflows averaged 3.26% of GDP in 2023, signaling some investor interest but not a dominant force in supporting growth. Taken together, these indicators point to an economy grappling with inflation, external fragility, and limited fiscal space, while maintaining pockets of high-value activity in technology and services.

Trade and Investment

Lebanon’s external orientation shows exports of goods and services at 30.6% of GDP in 2023 and imports at 73.7% of GDP, highlighting a highly open economy with substantial reliance on external supplies. The presence of high-technology exports—about 98 million USD in 2023—signals capability in advanced sectors that could form the basis for more export-oriented growth if supported by investment and stable policy conditions. Net foreign direct investment inflows reached 3.26% of GDP in 2023, indicating a moderate level of international capital engagement, though governance and macroeconomic volatility appear to constrain larger inflows. The current account deficit of 28.1% of GDP in 2023 reinforces the vulnerability to shifts in capital flows and import costs, suggesting that structural reforms, improved governance, and a competitive business environment would be crucial to mobilize sustained investment and reduce external vulnerabilities. The data collectively imply an economy with notable import dependence, selective strengths in high-tech exports, and a need for policy stability to attract larger, longer-term investment and restore external balance.

Governance and Institutions

Lebanon’s governance indicators paint a challenging picture. Political stability and absence of violence/terrorism are rated at -1.52 in 2023, while regulatory quality stands at -1.01, rule of law at -1.17, control of corruption at -1.23, and government effectiveness at -1.58. These negative scores suggest weak institutional performance across the core dimensions of governance, including policy quality, legal integrity, public sector effectiveness, and anti-corruption. The combined pattern of low governance quality is consistent with a fragile macroeconomic environment, limited public trust, and obstacles to predictable policy implementation. Low governance effectiveness can hamper economic reforms, deter investment, and impede the efficient delivery of essential services such as health, water, and infrastructure. In such a context, external shocks—like inflationary pressures and currency volatility—are more likely to feed into social and political tensions, complicating long-term development planning. The persistence of governance shortcomings underscores the importance of credible reform agendas, transparency measures, and clear rule-based frameworks to anchor growth, investment, and social protection in Lebanon’s economy.

Infrastructure and Technology

Lebanon shows strong digital penetration, with 83.5% of the population using the Internet in 2023, indicating a solid foundation for digital services, e-government, and online commerce. Health infrastructure, however, appears relatively constrained, with hospital beds at 2.73 per 1,000 people (2021), suggesting limited inpatient capacity to meet fluctuations in demand. Renewable energy consumption accounts for 6.8% of total final energy consumption in 2021, highlighting a reliance on conventional energy sources and a potential for expansion of renewables as a way to reduce import dependence and energy costs. The environmental resource base faces pressure: water stress is high, with freshwater withdrawal at 58.8% of available resources in 2021, signaling vulnerability to droughts, climate variability, and urban demand. In terms of environmental performance, total greenhouse gas emissions per capita are 4.27 t CO2e (2023), a level that invites further reductions through efficiency improvements and clean energy adoption. The combination of strong connectivity and relatively limited physical infrastructure points to opportunities for a digital-led growth model that must be supported by investments in health, water, and sustainable energy systems.

Environment and Sustainability

Lebanon faces notable environmental sustainability challenges alongside moderate emissions. Water resources are under stress, with freshwater withdrawal at 58.8% of available resources (2021), indicating significant competition among households, industry, and agriculture and a vulnerability to climate-driven hydrological variability. Renewable energy constitutes only 6.8% of total final energy consumption (2021), signaling strong dependence on non-renewable energy sources and a potential for expansion of renewables to enhance energy security and reduce import bills. Total greenhouse gas emissions per capita are 4.27 t CO2e (2023), suggesting moderate per-person emissions that could rise with growth in energy use if not managed through efficiency and cleaner technologies. The prevalence of undernourishment stands at 9.6% (2022), highlighting ongoing food security concerns alongside nutrition resilience efforts. The combination of high population exposure to water and energy constraints, coupled with governance and economic fragility, underscores the importance of integrated environmental management and targeted investments in water efficiency, renewable energy, climate adaptation, and social protection to build a more sustainable trajectory for Lebanon.

Events in Lebanon in 2023

Lebanon's Economic Crisis Deepens

In 2023, Lebanon's economic crisis took a significant turn as inflation rates reached a staggering 231% according to the Lebanese Central Administration of Statistics. The national currency, the Lebanese pound, plummeted to 100,000 LBP per US dollar, making it one of the world’s most devalued currencies. The crisis has led to widespread poverty, with more than 80% of the population living below the poverty line, and many families struggling to afford basic necessities. Protests erupted across major cities, with citizens demanding immediate government action to stabilize the economy and address the dire living conditions.

Presidential Elections Stalemate

Lebanon experienced a prolonged presidential election stalemate through 2023, as no candidate received the necessary political backing to win the presidency. Following the end of President Michel Aoun's term in October 2022, multiple attempts to elect a successor were thwarted by political infighting and the lack of consensus among the various factions in the Lebanese Parliament. As of late 2023, the parliament had held over 12 sessions without a successful election, heightening tensions and leading to fears of a governance vacuum in the country.

Humanitarian Needs Surge

In 2023, the humanitarian situation in Lebanon worsened significantly, with the United Nations reporting that 3.8 million people, or approximately 85% of the population, required aid. The UNICEF reported that more than 2 million children were affected by the crisis, suffering from malnutrition and lack of access to healthcare and education. Humanitarian organizations faced funding shortages, as international aid diminished amidst the global economic challenges, forcing a re-evaluation of response strategies to support the most vulnerable populations in Lebanon.

Impact of Regional Conflicts

Throughout 2023, Lebanon was heavily impacted by ongoing regional conflicts, particularly the fallout from the Israel-Palestine clashes. Increased tensions led to the displacement of Palestinian refugees within Lebanon, which already hosted over 450,000 registered refugees. Strained public services and heightened security concerns put further pressure on the Lebanese state, leading to clashes in refugee camps and cities. The Lebanese Armed Forces intensified their presence in vulnerable areas, but reported incidents of violence rose by 30%, reflecting the fragile security situation in the country.

Protests Against Corruption

In 2023, Lebanon saw a resurgence of anti-corruption protests, fueled by ongoing discontent over government inaction and systemic corruption. Demonstrations, which involved thousands of citizens, took place in Beirut and other major cities, with protesters demanding accountability for the state of the economy and calls for the resignation of corrupt officials. Activists highlighted over 500 instances of alleged corruption, including mismanagement of public funds and lack of transparency. The protests gained international media attention, resulting in a renewed call from human rights organizations for international action to hold corrupt leaders accountable.