Lebanon, which saw its economy expand 9 percent last year, should make the structural reforms necessary to tackle its massive debt during this period of economic growth as it will be much harder to make the required changes in less healthier times, the country’s former prime minister said.
“Economic and financial reforms should be done in good times because their cost will be higher and their efficiency lower in hard times,’’ said Siniora, who leads the majority party ( al Mustaqbal) in the Lebanese parliament after stepping down as prime minister in November.
Lebanon could see its gross domestic product grow by 8% or more this year, the International Monetary Fund said last Tuesday.
“Lebanon is reaping the benefits of improved domestic stability and prudent policies,” said Andreas Bauer, the fund’s Lebanon mission chief. The fund just completed its annual review of the Lebanese economy.
The IMF said budget surpluses have brought the country’s debt-to-GDP ratio down 30% from the staggering 180% where it stood in 2006.