Barclays Capital revises GDP

Barclays Capital revised downward its projection for real GDP growth in Lebanon to 3.1 percent in 2012 from an earlier forecast of 3.6 percent due to increased domestic political tensions, the deterioration of security conditions and an expected weakening of tourism activity this year. It said political risks in Lebanon were increasing due to the effects of the ongoing Syrian conflict, which is weakening Lebanon’s macroeconomic outlook. It noted that the rapid deterioration in Lebanon’s security situation led several Gulf and European countries to ban or discourage their nationals from visiting Lebanon in anticipation of further problems.