The impact of lifting sanctions on Syria on the Lebanese economy
Economic experts spoke about negative outcomes on Lebanon, which it’s clear that the return of economic activity in Syria after the lifting of sanctions may pose a major challenge to Lebanon, and lead to huge losses in many vital sectors.
The potential economic impacts on Lebanon if sanctions on Syria are lifted and the economic situation improves there.
The Lebanese economy may suffer huge financial losses compared to the gains that the Syrian economy will achieve.
The following are the most prominent impacts:
Finance and Banking: Suspension of remittances to Syria via Lebanese banks, leading to loss of commissions and the collapse of the Lebanese banking industry.
Transportation and ports: Decline in imports of goods via Lebanese ports as Syria relies on its ports, affecting customs duties and the work of transport companies.
Aviation: With the return of Syrian airports to operation, Syrians may stop using Lebanese airports, which will cost Lebanon significant losses in fees and expenses paid by travelers.
Hotel: Decrease in demand for Lebanese hotels as the need to travel via Lebanon declines.
Syrian assets migration: The return of a large portion of Syrians to their homeland with their money will lead to significant losses in the Lebanese economy due to a decline in market activity and the collapse of the Lebanese currency.
Illegal trading: Stopping the smuggling of Lebanese goods to Syria will lead to increased unemployment and a decline in tax revenues in Lebanon.
Labor market: The decrease in the Syrian labor force in Lebanon may lead to higher wages and increased production costs, especially in the agricultural sector.
Declining in real estate: The return of Syrians to their country will reduce the demand for renting homes, which will negatively affect the income of Lebanese landlords.
Demand for goods: The decrease in demand for products in the Lebanese market will lead to increased unemployment and a deterioration in the economy.
Stopping international aid: International aid that was given to Lebanon to support Syrian refugees may stop, affecting the Lebanese economy.
