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Lebanon This Week 562

November 24, 2018
Lebanon This Week 562

Net Wealth Per Adult in Top 10 UMICs (US$)

 

Source: Credit Suisse, Byblos Research

 

  • Lebanon's net wealth per adult at $33,726 at end-June 2018
    Global investment bank Credit Suisse estimated the net wealth per adult in Lebanon at $33,726 at the end of June 2018, nearly unchanged from $33,689 at end-June 2017 and relative to a peak of $37,111 at the end of 2007. Lebanon's net wealth per adult is the 53rd highest among 174 countries globally, the fourth highest among 48 upper middle-income countries (UMICs) and the eighth highest among 19 Arab countries at end-June 2018. Credit Suisse defines the net wealth per adult as the sum of a person's marketable value of financial and non-financial assets, less aggregate personal debt, with non-financial assets consisting mainly of real estate holdings. It provided annual data for the period between 2000 and 2016, and semi-annual figures for 2017 and 2018.

    The value of financial assets per adult in Lebanon stood at $20,697 at the end of June 2018, down by 1.2% from $20,942 a year earlier and compared to a peak of $25,490 at the end of 2007. Lebanon's financial wealth per adult was the 45th highest globally at end-June 2018, the second highest among UMICs, behind only Mauritius ($21,587), and the sixth highest among Arab countries. 

    Also, the value of non-financial assets per adult in Lebanon reached a peak of $23,109 at the end of June 2018, up by 5% from $22,019 a year earlier. Lebanon's non-financial assets per adult were the 52nd highest globally, the sixth highest among UMICs and the eighth highest among Arab countries at end-June 2018. 

    Further, the debt per adult in Lebanon reached a peak of $10,080 at the end of June 2018, up by 8.7% from $9,272 a year earlier. It was the 38th highest globally, the highest among UMICs and the fifth highest among Arab countries at end-June 2018. 

    In parallel, Credit Suisse indicated that 77.4% of Lebanese adults each had a net wealth below $10,000 as at the end of June 2018, 18.8% had a net wealth between $10,000 and $100,000 each, 3.5% of Lebanese adults had an aggregate net wealth between $100,000 and $1m each, and 0.3% of Lebanese adults each had a total net wealth that exceeds $1m. Further, the median wealth per adult in Lebanon stood at $3,932 at the end of June 2018 relative to $6,125 at end-June 2017, and compared to a high of $6,327 at the end of 2016.
     

  • Lebanon ranks 113th globally, 13th among Arab economies in ease of paying taxes
    The PricewaterhouseCoopers/World Bank Group Paying Taxes for 2019 ranked Lebanon in 113th place among 189 countries and jurisdictions worldwide and in 13th place among 20 Arab economies included in the survey. Also, Lebanon ranked in 30th place among 51 upper middle-income countries (UMICs) included in the survey. Lebanon's global and regional ranks were unchanged from the 2018 survey.

    The index measures the direct impact on a medium-size firm of the taxes and contributions it has to pay, and reflects the government-mandated tax burden that a standard business incurs. The index has four sub-indicators that consist of the number of tax payments incurred by a business, the total time to comply, the total tax rate as a percentage of commercial profits, and the processes that might take place after a firm files a tax return. Taxes include corporate, labor and other sub-categories.

    Also, the ease of paying taxes rankings are based on the distance to frontier (DTF) score, instead of a simple percentile distribution. The DTF measures how far economies have progressed towards the best performer around the world on each sub-indicator, rather than simply looking at how they compare to other economies. The DTF scores range from zero to 100, with a score of 100 representing the "frontier", or the best performer. Lebanon's DTF score is 67.94 in the 2019 survey, down from 68.21 in the 2018 survey.
     

  • More than 70% of Lebanese pound-denominated Treasury securities have five-year maturities or longer
    Figures released by the Association of Banks in Lebanon (ABL) show that the face value of outstanding Treasury securities denominated in Lebanese pounds reached LBP72,052bn, or the equivalent of $47.8bn, at the end of October 2018, compared to LBP73,221bn, or $48.6bn, at the end of October 2017. The weighted interest rate on Lebanese Treasury securities denominated in Lebanese pounds was 6.13% in October 2018 compared to 6.36% in October 2017.

    The distribution of outstanding Treasury securities denominated in Lebanese pounds at end-October 2018 shows that 47% of outstanding Treasury securities have seven-year maturities or longer and 71.3% have five-year maturities or more. In parallel, the face value of outstanding Treasury securities denominated in Lebanese pounds that matured in October 2018 was LBP946bn ($627.5m). 

    According to the ABL, LBP1,386bn or the equivalent to $919.4m of outstanding Treasury bonds in Lebanese pounds will mature in the remainder of 2018, while LBP11,708bn ($7.8bn) will mature in 2019 and LBP10,649bn ($7.1bn) will come due in 2020.
     

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