Net capital inflows to Lebanon are expected to increase by 3 percent in 2016 to reach $5.4 billion, according to the Institute of International Finance.
“Lebanon is one of 22 countries out of the 25 emerging markets included in the Institute’s survey that would post positive net private capital flows in 2016. Also, Lebanon would be the third smallest recipient of capital flows among 22 emerging markets with positive nonresident flows, as well as the second smallest among six countries in the Middle East & Africa region in 2016,” the IIF said.
Nassib Ghobril, chief economist at the Byblos Bank Group, said that “capital inflows are generally affected by confidence and by investment opportunities,” adding that “confidence expected to pick up in 2017 with the improvement in the domestic political climate, but investment opportunities need to materialize in conjunction with the improvement in sentiment in order to attract a higher level of capital.”
The IIF added that Lebanon would post the second smallest increase in net capital inflows among emerging markets in 2016.
“The expected rise in nonresident net private capital inflows to Lebanon this year would be due mainly to an increase of 61 percent in net inflows from nonresident commercial banks and other private creditors, which would partly be offset by a decrease of 23.4 percent in equity investment inflows,” the report said.
