The future of Lebanon’s economy could be hanging in the balance. Years of apparent mismanagement by a series of politicians who have failed to pursue reforms are taking their toll. Today, sizeable fiscal and current account deficits loom large at a time when deposit inflows from the diaspora, which fund these deficits, are beginning to stall.
I don’t see much mystery in the recent ratcheting up of tensions between the United States and Iran. U.S. sanctions are crushing the Iranian economy. The ever-tightening vice has proved increasingly threatening to Iran’s leaders.