Lebanon's Economic Collapse in Numbers

A woman washes dishes in her kitchen as she uses a portable electric light due to a power cut, in Beirut, Lebanon July 6, 2020. Picture taken July 6, 2020. Reuters
A woman washes dishes in her kitchen as she uses a portable electric light due to a power cut, in Beirut, Lebanon July 6, 2020. Picture taken July 6, 2020. Reuters
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Lebanon's Economic Collapse in Numbers

A woman washes dishes in her kitchen as she uses a portable electric light due to a power cut, in Beirut, Lebanon July 6, 2020. Picture taken July 6, 2020. Reuters
A woman washes dishes in her kitchen as she uses a portable electric light due to a power cut, in Beirut, Lebanon July 6, 2020. Picture taken July 6, 2020. Reuters

Lebanon is battling its worst economic crisis since the 1975-1990 civil war. The national currency is in freefall, while poverty and unemployment are on the rise.

Here are some numbers:

Plummeting pound
The Lebanese pound has lost around 90 percent of its value against the dollar on the black market in 18 months of crisis.
While the currency remains officially pegged to the greenback at 1,507 Lebanese pounds, the exchange rate has shot up to around 15,000 on the black market.

Poverty
Some 55 percent of Lebanese live below the poverty line of 3.84 dollars a day, the United Nations says.

Up to 23 percent of Lebanese live in extreme poverty, compared with just eight percent in 2019.

Inflation
Consumer prices rose by almost 146 percent during 2020, official statistics show.

Food prices overall rose by more than 400 percent last year, the World Food Program says.

The price of a basket of key survival items such as rice, pasta and cooking oil has almost tripled since October 2019, the WFP says.

The price of subsidized bread has risen by 91.5 percent since May 2020, as the cash-strapped government has gradually increased the price of a large packet of flatbread while also diminishing its weight.

The price of meat has increased by 110 percent over the past year, while the cost of chicken has risen by 65 percent, the World Bank says.

Median salary
Before the economic crisis broke in 2019, the median salary in Lebanon was more than 950,000 Lebanese pounds, official statistics show, according to Agence France Presse.

While that salary was worth around $630 dollars before the crisis, its value on the black market on Tuesday was just $63.

Unemployment
In late 2020, unemployment stood at 39.5 percent.

From 2019 to 2020, full-time employment dropped by 40 percent in the construction sector, while it fell by 31 percent in the hotel and restaurant sector, the United Nations says.
Aid

A World Bank loan of $246 million is to provide aid to around 786,000 hardest hit Lebanese.

Recession
Lebanon's gross national product fell by 25 percent last year, the International Monetary Fund says.

Debt
Public debt reached $95.6 billion in late 2020, the country's third largest lender, Byblos Bank, says.

That is equivalent to 171 percent of GDP, the International Monetary Fund says.

Foreign currency reserves
On March 15, the central bank had $17.5 billion in reserves, its website said, even if analysts have alleged the figure is likely lower.

At the end of February 2020, it had stood at $30.3 billion, Byblos Bank analysts said, explaining the drop was mainly due to spending on subsidies including wheat and fuel.
Trade deficit

Lebanon's balance of payments deficit reached $10.2 billion by the end of November 2020, almost double that registered a year before, central bank statistics showed, according to a report by top lender Bank Audi.

Electricity
The government has spent $40 billion on the power sector since 1992, accounting for 40 percent of public debt, a report by the American University of Beirut has said.

Yet the state utility covers only 63 percent of electricity demand, which results in rolling blackouts, a December study by the AUB said.

Now just two weeks remain before a nationwide blackout unless emergency funding is secured to buy fuel oil to operate power plants, the caretaker energy minister has warned.

Coronavirus
Even as it battles with economic crisis, Lebanon has recorded at least 418,448 Covid-19 cases since early last year, 5,380 of them fatal.

Port explosion
A massive explosion at Beirut port last year killed more than 200 people and ravaged swathes of the capital.

It caused between $6.7 billion and $8.1 billion in damage and economic losses, the World Bank said.

Refugees
Lebanon's more than six million inhabitants include around 1.5 million Syrians who have fled war in their homeland, of whom almost one million have been registered as refugees with the United Nations.

Nine out of 10 Syrian refugee families in Lebanon live in extreme poverty, the UN says.

Nearly 180,000 Palestinians also live in Lebanon, according to an official census.

In a May 2020 survey, 80 percent of respondents said they had lost their job or seen their salary reduced, the UN agency for Palestinian refugees said.



Gold Bounces Back on Softer Dollar, US-Iran Concerns; Silver Rebounds

Gold and silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. REUTERS/Angelika Warmuth
Gold and silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. REUTERS/Angelika Warmuth
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Gold Bounces Back on Softer Dollar, US-Iran Concerns; Silver Rebounds

Gold and silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. REUTERS/Angelika Warmuth
Gold and silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. REUTERS/Angelika Warmuth

Gold rebounded on Friday and was set for a weekly gain, helped by bargain hunting, a slightly weaker dollar and lingering concerns over US-Iran talks in Oman, while silver recovered from a 1-1/2-month low.

Spot gold rose 3.1% to $4,916.98 per ounce by 09:31 a.m. ET (1431 GMT), recouping losses posted during a volatile Asia session that followed a fall of 3.9% on Thursday. Bullion was headed for a weekly gain of about 1.3%.

US gold futures for April delivery gained 1% to $4,939.70 per ounce.

The US dollar index fell 0.3%, making greenback-priced bullion cheaper for the overseas buyers.

"The gold market is seeing perceived bargain hunting from bullish traders," said Jim Wyckoff, senior analyst at Kitco Metals.

Iran and the US started high-stakes negotiations via Omani mediation on Friday to try to overcome sharp differences over Tehran's nuclear program.

Wyckoff said gold's rebound lacks momentum and the metal is unlikely to break records without a major geopolitical trigger.

Gold, a traditional safe haven, does well in times of geopolitical and economic uncertainty.

Spot silver rose 5.3% to $74.98 an ounce after dipping below $65 earlier, but was still headed for its biggest weekly drop since 2011, down over 10.6%, following steep losses last week as well.

"What we're seeing in silver is huge speculation on the long side," said Wyckoff, adding that after years in a boom cycle, gold and silver now appear to be entering a typical commodity bust phase.

CME Group raised margin requirements for gold and silver futures for a third time in two weeks on Thursday to curb risks from heightened market volatility.

Spot platinum added 3.2% to $2,052 per ounce, while palladium gained 4.9% to $1,695.18. Both were down for the week.


Europe, Türkiye Agree to Work Toward Updating Customs Union

European Union (R) and Turkish flags fly at the business and financial district of Levent in Istanbul, Türkiye September 4, 2017. REUTERS/Osman Orsal
European Union (R) and Turkish flags fly at the business and financial district of Levent in Istanbul, Türkiye September 4, 2017. REUTERS/Osman Orsal
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Europe, Türkiye Agree to Work Toward Updating Customs Union

European Union (R) and Turkish flags fly at the business and financial district of Levent in Istanbul, Türkiye September 4, 2017. REUTERS/Osman Orsal
European Union (R) and Turkish flags fly at the business and financial district of Levent in Istanbul, Türkiye September 4, 2017. REUTERS/Osman Orsal

The European enlargement chief and the Turkish foreign minister said on Friday they had agreed to continue work toward modernizing the EU-Türkiye customs union and to improve its implementation, Reuters reported.

European Commissioner for Enlargement Marta Kos met Turkish Foreign Minister Hakan Fidan in the capital Ankara on Friday.

"They shared a willingness to work for paving the way for the modernization of the Customs Union and to achieve its full potential in order to support competitiveness, and economic security and resilience for both sides," they said in a joint statement afterward.

The sides also welcomed the gradual resumption of European Investment Bank (EIB) operations in Türkiye and said they intended to support projects across the country and neighbouring regions in cooperation with the bank.


Bitcoin Falls 8% and Asian Shares Mostly Slip after Wall Street is Hit by Tech Stock Losses

FILE PHOTO: Representation of Bitcoin cryptocurrency in this illustration taken September 10, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: Representation of Bitcoin cryptocurrency in this illustration taken September 10, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
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Bitcoin Falls 8% and Asian Shares Mostly Slip after Wall Street is Hit by Tech Stock Losses

FILE PHOTO: Representation of Bitcoin cryptocurrency in this illustration taken September 10, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: Representation of Bitcoin cryptocurrency in this illustration taken September 10, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

US futures and Asian shares traded mostly lower on Friday, tracking Wall Street’s losses as technology stocks again dragged on markets.

Bitcoin sank to roughly half its record price, giving back all it gained since US President Donald Trump won the White House for his second term.

Tokyo’s Nikkei 225 was up 0.8% to 54,253.68, recovering from losses earlier this week, with technology-related stocks leading gains. SoftBank Group rose 2.2% and chipmaker Tokyo Electron rose 2.6%. Japan will also be holding its general election on Sunday, in which Prime Minister Sanae Takaichi expects to win a stronger public mandate for her policies.

Shares of Toyota Motor were up 2%. The carmaker said Friday its CEO Koji Sato will be stepping down in April, and is to be replaced by Chief Financial Officer Kenta Kon, The Associated Press said.

South Korea’s Kospi lost 1.4% to 5,089.14, weighed down by tech shares. Samsung Electronics, the country’s biggest listed company, fell 0.4%. Chipmaker SK Hynix was also down 0.4%.

Hong Kong’s Hang Seng fell 1.4% to 26,519.60. The Shanghai Composite index was down 0.3% to 4,065.58.

In Australia, the S&P/ASX 200 shed 2% to 8,708.80.

Taiwan’s Taiex was mostly flat. India's Sensex traded 0.1% lower.

Against the backdrop of the technology sell-off this week, bitcoin, the world’s largest cryptocurrency, saw dimming enthusiasm and was trading about 8% lower at just under $65,000 early Friday, after it briefly sank over 12% to below $64,000 on Thursday. That’s down from a record of above $124,000 in October.

The future for the S&P 500 was 0.2% lower, while that for the Dow Jones Industrial Average fell 0.1%.

On Thursday, the S&P 500 fell 1.2% to 6,798.40, its sixth loss in the seven days. The Dow Jones Industrial Average fell 1.2% to 48,908.72. The Nasdaq composite dropped 1.6% to 22,540.59.

Technology stocks were among the worst hit as concerns persist over whether massive AI investments by many of the Big Tech firms will pay off.

Chipmaker Qualcomm sank 8.5% despite better-than-expected quarterly revenues. Alphabet lost 0.5% as investors were focused on its huge spendings on AI.

Amazon fell 11% in after hours trading Thursday after it announced plans to boost capital spending by more than 50% to $200 billion in AI and other areas.

American artificial intelligence startup Anthropic ’s new AI tools also fueled the sell-off of software stocks on Wall Street this week, as its sophistication means many traditional software development services and products could be disrupted or replaced.

Gold and silver prices have been volatile this week following a monthslong rally as investors moved into safe haven assets prompted by factors including elevated geopolitical tensions. Gold prices fell 0.6% on Friday to $4,858.60 per ounce, after nearing $5,600 last week.

Silver prices dropped 5.5% to $72.52 per ounce after rising earlier this week. It lost more than 31% last Friday.

In other dealings early Friday, US benchmark crude oil gained 35 cents to $63.64 a barrel. Brent crude, the international standard, rose 36 cents to $67.91 a barrel.

The US dollar fell to 156.74 Japanese yen from 157.03 yen. The euro was trading at $1.1789, up from $1.1777.