Lebanese authorities have committed in a significant programme of structural reforms in order to straighten out the country's tough economic situation. Lebanon's growth was sustained during the reconstruction period in the 1990s. It gradually crumbled between 1996 and 2000 and has revived since then. GDP growth rate was 4.9% in 2003 and 6.3% in 2004. Lebanese political situation deteriorated, following Rafik Hariri's assassination on february, 14th of 2005. In 2005, the GDP growth rates was 0%. The IMF forecasts a 3% growth in 2006. The main challenge to be faced by the government is the country's debt, given that its public debt amounts to 180% of its GDP. A plan was designed to pull the country out of the crisis, including two main parts. First, international credits with reduced rates, decided in the end of 2002 during Paris II's conference, will help the public revenue Department to lower debt servicing. Second, a privatisation programme for telecommunications, electricity and water sectors should allow the country to reduce its public debt amount. The private sector, traditionally dynamic, is experiencing a growth revival.
The agriculture sector employs 15% of the active population. Cereals (mainly wheat and barley), vegetables, potatoes, fruits and wine are the main crops. Mining natural resources are limited and are only exploited for domestic consumption. The manufacturing sector accounts for 17% of the GDP. The main industrial activity is building and civil engineering, but other activities such as jewellery and food processing are dynamics. The banking sector is successful. Services provide two thirds of the GDP. Tourism is undergoing a strong growth as a result of huge investments. Similarly, computing services (especially software) have also goods prospects, including export prospects.
Lebanon has proved its opennessto international trade by signing an Association Agreement with EU, making procedures to access WTO membership and by signing a free-trade agreement with the Gulf Cooperation Council (GCC) in May 2004. Lebanon's three largest import countries are Italy, Germany and France. Its top three export partners are Switzerland, Iraq and the United Arab Emirates. Lebanon mainly imports hydrocarbons, transport vehicles and capital goods.
