Govt publishes damning McKinsey report

The Economy Ministry has made public a damning macroeconomic report from U.S. consulting firm McKinsey that reveals serious deficiencies across Lebanon’s public and private sectors, while also setting out a detailed 15-year vision aimed at prosperity. The 1,200-page report, which was posted on the ministry’s website Wednesday and watermarked as “internal,” includes a sector-by-sector analysis of the country that lays plain the abysmal situation in Lebanon’s economy, infrastructure and quality of life. Lebanon’s infrastructure ranks 113th out of 137 countries; perceived corruption has increased by 26 points since 2012, from 120 to 146 out of 180. Gross domestic product per capita today is only 30 percent higher than it was in 1980 five years into Lebanon’s Civil War, which devastated the country. What money the diaspora does funnel back to Lebanon about $6.9 billion in remittances is largely not channeled into productive areas. Lebanon should also develop six industrial parks to foster high competition. TOURISMThe tourism sector, which Lebanon relies on heavily, requires serious reform if the country is to be transformed into “the up-and-coming Mediterranean Riviera,” the report says. While the tourism sector is currently on an upswing, McKinsey said low occupancy rates in hotels is deterring private-sector investment.

…