The Gulf Cooperation Council’s (GCC’s) condemnation of Hizbollah’s intervention in the Syrian crisis on 10 June and the subsequent GCC Council decision to take measures against Hizbollah loyalists’ “residencies as well as their financial and trade transactions” could have serious economic implications for Lebanon, analysts and economists in Beirut warn.
The Lebanese economy is in recession, with the exception of the banking and real estate sectors (and the latter is beginning to show signs of fatigue). Even before the latest GCC declaration, the political crisis in Syria had taken a heavy toll on a deteriorating economy. Lebanon today is in danger of becoming a “failed state” under a caretaker government which is unable to take decisions, cannot provide security and public order, and can only postpone parliamentary elections. (CONTINUED - 1176 WORDS)