The Institute of International Finance (IIF) published today its regional report on the Middle East & North Africa (MENA) region, indicating that rigid ideologies are battling political pragmatism at the expense of economic growth and reduced investment. The analysis, conducted by the Africa & Middle East Department of the IIF, concludes that the region’s uncertain future political landscape is blocking urgent tasks such as the re-establishment of security and the rule of law, and is inhibiting the urgently needed structural reforms that would lift growth trajectories and reduce unemployment.

During a press conference held at Byblos Bank Headquarters in Beirut, Dr. Garbis Iradian, Deputy Director of the Africa & Middle East Department and principal author of the report, commented: “the deepening conflict in Syria continues to pose a threat to Lebanon’s political order and economic stability. Real GDP is expected to grow by 0.6% in 2012, following the IIF's estimate of 1.8% in 2011 and 7% in 2010. Reaching consensus on effective government and an improvement in Lebanon’s domestic security, combined with structural reforms, including fiscal reforms and addressing the chronic problems in the electricity sector, could spur growth to 3.5% in the course of 2013. This would help move the Lebanese economy to a higher growth path beyond 2013 and help bring the public debt down to more sustainable levels."