On May 16 the Directorate General of Customs released trade figures, prompting LIMS to launch another round of rebuttals against the popular narrative that Lebanon’s trade deficit is a driver of inflation and a drain on foreign reserves.

LIMS pointed out that the country enjoys sizeable inflows of U.S. dollars from tourism and remittances—streams that empower residents to import a broad spectrum of goods and services. The resulting surplus in dollar receipts is precisely why a trade deficit can be read not as an economic weakness but as evidence of a healthy consumption capacity.

LIMS added that openness to international trade allows Lebanon to secure goods at competitive prices and does not contribute to inflation. The main driver of inflation is the central bank’s monetary expansion through excessive issuance of Lebanese pounds as seen during the period of 2020 to 2023.

The country’s underlying challenge lies in its persistent fiscal deficit, with government spending outpacing tax revenues and financed through central bank borrowing. The practice has created an unsustainable imbalance. Maintaining stability requires controlling expenditure and preserving a balanced budget.

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