Services and Supply
In Lebanon, the quality and availability of services and supplies can vary across sectors, and both the government and private companies play roles in supporting specific sectors.
Government and Private Sector Support: The government and private companies both contribute to supporting various sectors in Lebanon. The government plays a crucial role in sectors such as healthcare, education, infrastructure, and utilities. It provides public services and infrastructure development, although the quality and availability of these services can be affected by economic challenges and political instability. The private sector, on the other hand, drives growth in industries such as finance, tourism, telecommunications, and retail, offering a wide range of services and supplies to the public.
Geographic Development in the Service Sector: The service sector in Lebanon is not limited to a specific geographic area but is relatively concentrated in urban centers, particularly Beirut. Beirut serves as the primary hub for various service industries, including finance, hospitality, and professional services. However, other regions of Lebanon also offer local services and support their respective communities based on local needs and resources.
Supply Issues: Lebanon has experienced supply issues throughout its history, and there have been instances of shortages and disruptions in essential supplies, particularly during periods of political unrest or economic crises. Factors such as political instability, economic challenges, and external shocks have at times affected the availability and affordability of goods and services. In recent years, Lebanon has faced significant economic difficulties, including currency devaluation, inflation, and shortages of vital commodities, which have impacted the overall supply chain and access to necessities such as food, medicines, and fuel.
For nearly three years, Lebanon has been assailed by the most devastating, multi-pronged crisis in its modern history. The unfolding economic and financial crisis that started in October 2019 has been further exacerbated by the dual economic impact of the COVID-19 outbreak and the massive Port of Beirut explosion in August 2020.
Of the three crises, the economic crisis has had by far the largest (and most persistent) negative impact. The Spring 2021 Lebanon Economic Monitor found that Lebanon’s economic and financial crisis ranks among the worst economic crises globally since the mid-nineteenth century. GDP per capita dropped by 36.5% between 2019 and 2021, and Lebanon was reclassified by the World Bank as a lower-middle-income country, down from upper-middle-income status in July 2022. Lebanon has witnessed a dramatic collapse in basic services, driven by depleting foreign exchange (FX) reserves since the onset of the compounded crisis. Severe shortages of fuel items resulted in the national electric grid experiencing more than eight rolling blackouts as public electricity supply averages one to two hours per day. Fuel shortages have also hindered access to healthcare and clean water, while food supply shops, transport service providers, and telecom network operators face severe disruptions to their supply chains. Lebanon has also had to deal with the COVID-19 pandemic through intermittent lockdowns and other measures to mitigate the impact of the virus both on people and on the already weak health system. Vaccination, launched in February 2021 with initial financing from the World Bank, progressed according to the National COVID-19 Deployment and Vaccination Plan, with the aim to vaccinate 70% of the total population, citizens, and non-citizens, in a multi-phase rollout by the end of 2022.
