BEIRUT: In its latest country report on Lebanon the Economist Intelligence Unit forecast economic growth in 2013 at 1.8 percent.

The EIU predicted weak growth for Lebanon as it assumed that security issues and political differences would hinder the decision-making process. In addition, regional tensions will continue to negatively affect the economy.

However, growth will be more robust from 2014 onward.

As Lebanon’s economy is service oriented, it is highly sensitive to political events and dependent on regional performance, due to the fact that Arab states are the main consumers of Lebanon services, according to the EIU.

From 2014 onward, growth is forecast to pick up substantially, averaging 4.4 percent in the period until the year 2017, based on the assumption that the situation in neighboring countries stabilizes.

Growth will be driven by high private and government consumption, as well as robust growth in services export volumes.