The Economic, Monetary, and Banking Context in Lebanon (2011–2019): A Critical Analysis

This paper provides an in-depth analysis of Lebanon's economic, monetary, and banking conditions between 2011 and 2019, a critical period preceding the country's severe financial collapse.Utilizing official data from the Ministry of Finance, the Banque du Liban (BdL), and the Customs Authority, the study highlights key trends in public finances, debt accumulation, monetary policy, and external trade.The analysis reveals persistent fiscal deficits, rising public debt, and an overreliance on financial engineering rather than structural reforms.Despite the apparent monetary stability and fixed exchange rate regime, vulnerabilities in the banking sector and declining foreign reserves signaled growing fragility.The paper also underscores the role of political gridlock, governance failures, and regional instability in exacerbating Lebanon's macroeconomic imbalance.These findings contribute to a better understanding of the root causes of the 2019 financial crisis and offer policy insights for emerging economies facing similar challenges.