Current Account Balance: Lebanon

Analysis# Lebanon Current Account Balance Lebanon's current account balance stands at -19.7% of GDP in 2024, reflecting persistent external imbalances. The country has deteriorated dramatically since 1980, with a total change of -462.9 percentage points. While Lebanon briefly enjoyed a surplus of 37.8% of GDP in 1982, the metric has remained deeply negative for decades, hitting a nadir of -57.5% in 1991. The 44-year downward trajectory reveals structural vulnerabilities in Lebanon's external position. Recent volatility masks underlying weakness. The 2020 improvement to -11.1% proved temporary, followed by a sharp deterioration to -30% in 2022—the worst performance in three decades. The 2024 reading of -19.7% suggests modest stabilization, though the deficit remains severe compared to most economies. Sustained current account deficits of this magnitude indicate Lebanon continues heavy reliance on external financing and foreign currency inflows to fund consumption and investment.