The daily Al Diyar indicates that the Lebanese economy should be heavily impacted by the rise in the prices of raw materials, in particular food and energy, in the world while the country lacks foreign currencies to finance these purchases and that the government remains paralyzed by the political crisis.
If, in the normal case, the government would have to provide financing via forward contracts until an agreement with the IMF is concluded, the current paralysis of the Council of Ministers could imply a sharp increase in the prices of basic necessities, impacting directly to the population and public services.
Thus, an agreement with the International Monetary Fund is thus made necessary to obtain about 6 billion dollars of aid just to cover the costs related to public expenditure and essential economic needs in the first half of the new year. However, this agreement – while Prime Minister Najib Mikati remains optimistic about the imminent conclusion of the talks, as early as February – remains linked to an approval by the Council of Ministers, something impossible for the moment, which could lead to a further recession. of 4% and annual inflation of 30% in 2022.
