Lebanon’s 2015 fiscal deficit widened by 28 percent

Lebanons fiscal deficit widened by 28 percent to $3.952 billion last year, finance ministry figures published on Wednesday showed, as government finances continue to be hit by war in Syria which has curbed economic growth for five years.

The deficit grew despite a nearly $1 billion fall in energy costs, which reduced government payments to Lebanons electricity generator and distributor EDL by 45 percent, the figures showed.

Tax revenues were down slightly last year, including VAT which dropped by 4 percent. Thats a reflection of the stagnation of domestic demand and economic activity, Byblos Bank chief economist Nassib Ghobril said.

Another factor behind the wider deficit in 2015 was that revenues in the previous year were boosted by a one-off transfer of accumulated telecoms receipts, Ghobril said.

Lebanons economy grew by an annual average of 8 percent in the years leading up to 2011, when the conflict erupted in neighboring Syria. Since then growth has fallen sharply and stood at 1.4 percent last year, Ghobril said.