was the system prevalied in lebanon correct ? why or why not
Answers
Answer:
Explanation:
Lebanon exports little and imports heavily, while its economy is choked by one of the world’s largest debt burdens as a result of years of inefficiency, waste and corruption.
Ten years ago, GDP growth was ticking along at 8-9% a year. But this has fallen sharply for several reasons including the impact of war in Syria, wider regional turmoil and diminished capital flows from abroad.
Economic growth, which has been stuck between 1-2% for several years, has fallen to zero this year. Yet, the government continues to borrow. While GDP stands at $55 billion, the national debt is around 150% of GDP, or $85 billion.
With few sources of foreign exchange, Lebanon depends on its diaspora to remit cash to the banking system, which is then recycled to finance imports and the state deficit