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UPDATE 1-Lebanon 09 growth less than 5 pct, IMF forecasts

Published 02/06/2009, 12:23 PM
Updated 02/06/2009, 12:24 PM

(Adds details, background)

BEIRUT, Feb 6 (Reuters) - The International Monetary Fund said on Friday it would revise down Lebanon's 2009 growth projection to probably less than 5 percent.

"We are revising it down, probably it will be less than 5 percent," said IMF Deputy Managing Director Murilo Portugal.

"We are discussing this with the authorities here... it will be positive and it will be close to the average, which has been around 4 percent," he told reporters in Beirut.

Lebanese Central Bank Governor Riad Salameh had said in December that according to IMF projections, the economy could grow by between 3 and 5 percent in 2009.

Lebanon has revised down its economic growth forecast to between 3-4 percent from 5 percent because of concerns about growth in the Gulf Arab region.

About a third of the Lebanese workforce are employed in Gulf countries, which have been strongly affected by the financial crisis.

Portugal said the IMF has been revising down growth forecasts in general.

"Lebanese growth prospects for this year won't be as good as they were last year. This is not something specific to Lebanon. The whole world is experiencing that type of problem," he told reporters at a news conference with Lebanese Finance Minister Mohammad Chatah.

"It would be strange if the world entirely would have less favourable prospects and not Lebanon.

"In the case of Lebanon there will be a deceleration of growth but it will still be a positive growth and not very much below what the average of the past maybe 15 years have been."

Lebanon witnessed growth of above 6 percent in 2008 and has remained largely insulated from the global financial crisis due to tight central bank regulation. (Reporting by Yara Bayoumy; Editing by Ron Askew)

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