Business
Lebanon’s economy shows early signs of recovery in 2025
President of Lebanon, Joseph Aoun
KUWAIT CITY, Aug 10: Since President Joseph Aoun took office in January 2025, Lebanon’s economy has begun showing signs of recovery from the prolonged recession and near-total paralysis that afflicted it for years. Early official indicators point to renewed momentum in the economic reform process, driven by a return to political and institutional stability.
Many local and international observers are hopeful that Lebanon’s security situation will remain stable, as this will positively impact economic reforms. President Joseph Aoun has pledged several reforms, but their success depends heavily on the cooperation and support of all parties.
However, recent political tensions have raised concerns. The withdrawal of Hezbollah and Amal Movement ministers from the latest ministerial meeting in protest against placing the issue of Hezbollah’s weapons on the agenda has sparked fears of renewed political crisis after Lebanon’s slow recovery. As a result, there are growing calls for a return to calm and ministerial stability, and for all ministers to fulfill their responsibilities to ensure continued economic progress. This comes amid international expectations that Lebanon could achieve positive economic growth rates by the end of 2025. However, concerns persist among observers about the risk of Lebanon slipping back into economic decline, particularly given the country’s long-standing struggles with widespread corruption, financial mismanagement, and money laundering.
The Lebanese people are hopeful that the path of economic reform championed by President Joseph Aoun since he assumed office in May will continue, especially in light of recent data from the International Monetary Fund (IMF) pointing to promising developments. According to the IMF, inflation is expected to decline to 15.2 percent in 2025, especially due to President Aoun’s efforts to promote national unity and reduce political polarization, emphasizing loyalty to the country above sectarian, religious, or partisan divisions. Local and international circles highlighted Lebanese President Joseph Aoun’s call for global support in rebuilding Lebanon and revitalizing its economy as an important step, especially as the damage to infrastructure and urban areas is estimated to have cost the country over USD 14 billion.
They noted that President Aoun’s commitment to several reform issues, including ensuring the integrity of parliamentary elections, purging state institutions of corrupt officials, and strengthening the army and judiciary through proposed judicial authority legislation, could place Lebanon on a clear path toward meaningful economic recovery. However, the success of these reforms hinges on fulfilling the demands of the president and government to transfer Hezbollah’s weapons to state control and eliminate unusable arms. They emphasized the importance of securing support for the army and security forces, noting that maintaining national security is directly linked to economic recovery and stability.
President Joseph Aoun was also praised for his calls to eliminate bureaucratic obstacles that hinder individual and institutional progress. He has recently underscored the need to activate the role of municipalities, implement the administrative decentralization law, hold parliamentary elections on schedule, and guarantee the voting rights of expatriates, all while urging government ministers to fully assume their responsibilities. Experts agree that implementing these reforms will revitalize the Lebanese economy and guide it onto the right path.
To further stimulate economic recovery, many financial and economic experts have called for robust support of the banking sector. According to the Central Bank of Lebanon, the sector is showing signs of relative recovery, with foreign currency reserves recently reaching USD 11.2 billion, while the Lebanese pound has remained relatively stable compared to previous years.
By Najeh Bilal
Al-Seyassah/Arab Times Staff
Undersecretary of the Kuwaiti Ministry of Finance, Aseel Al-Munifi
KUWAIT CITY, Sept 9: Undersecretary of the Kuwaiti Ministry of Finance, Aseel Al-Munifi, on Tuesday emphasized the need to develop the tax system and achieve financial sustainability to promote economic integration among Gulf Cooperation Council (GCC) member states.
Speaking at the 15th meeting of the Committee of Heads and Directors of Tax Administrations in GCC countries in Kuwait, Al-Munifi said the meeting is part of ongoing efforts to coordinate GCC tax authorities and develop mechanisms to unify joint tax policies that serve the interests of member states and their populations.
She expressed hope that the annex to amend the unified excise tax agreement would be signed at the upcoming financial and economic cooperation meeting scheduled in Kuwait next October, which will bring together the GCC finance ministers. Al-Munifi also commended the heads and directors of tax authorities and the Unified Tax System Working Group for their efforts in preparing studies, working papers, and recommendations.
Khalid Al-Sunaidi, Assistant Secretary-General for Economic and Development Affairs at the GCC General Secretariat, said the meeting continues the process of cooperation among GCC countries in tax policies. He noted that the aim is to unify tax frameworks, enhance economic integration, and support competitiveness at the regional and international levels.
Al-Sunaidi added that discussions at the meeting included outcomes from the GCC Unified Tax System Working Group on redefining energy drinks to reduce the consumption of unhealthy products, and plans to establish a comprehensive electronic system for all types of indirect taxes, alongside other related topics.
During the meeting, GCC tax heads and directors reviewed recommendations and decisions from the 14th meeting and previous sessions, submitting them to the undersecretaries of finance in the GCC. It was agreed to form a technical working group to develop the electronic system for indirect taxes and to redefine energy drinks in the Unified Excise Tax Agreement according to international definitions and classifications.
The 15th GCC Tax Committee meeting held in Kuwait.
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