The geo-economy presents Lebanon with challenges associated with being a nexus for regional fault lines and risks from its dependence on capital inflows. The growth outlook remains subdued as the Syrian conflict, the domestic political impasse, and some of the negative effects of falling oil prices provide significant headwind. Spatial industrial policies, most notably the development of industrial parks and special economic zones, offer Lebanon a viable tool to support increased investment and competitiveness in the industrial sector. The geo-economy also presents an opportunity in the form of tech startup ecosystems, where communities of entrepreneurs interact, becoming a viable source for high-skill job creation in Lebanon.
Lebanon Economic Monitor, Spring 2016: A geo-economy of risks and reward (PDF)