Beirut Traders Association(BTA) andBankmed release the results of“Beirut Traders Association – Bankmed Investment Index” for the fourth quarter of 2014

Beirut, March…., 2015:Beirut Traders Association and Bankmed released the results of“Beirut Traders Association – Bankmed Investment Index,”for the fourth quarter of 2014. The index, which is backed by the technical support of the Central Administration of Statistics in Lebanon, aims at assessing the reality of the wholesale sector in Lebanon.

The index reflects the investment climate in Lebanon, shedding light on the commercial activity and overall economic situation. The results for the fourth quarter of 2014 indicate that the “Turnover Component” of the index recorded deterioration. However, the “Intention to Invest Component” of the indexrevealed a continued willingness to increase investment in the upcoming period.

The “Turnover Component,” which tackles the activity during the quarter under study, recorded a real deterioration amounting to 3.79% in comparison with the thirdquarter of 2014. This decline is attributed to the security and political developments that loomed over Lebanon during the fourth quarter and which negatively impacted the wholesale activity. In addition, the difficulty of collecting dues from retailers continues to affect the wholesale sectors. It is also worth noting that continual upsurge of local unemployment continues to impact the consumption trend of domestic consumers, which in turn reflects negatively on the commercial activity.

According to the published results, most sectors witnessedsignificant real declines,especially the Wholesale ofPhone and Communication Equipment Sector and the Wholesale of Clothes Sector. On the other hand, the Wholesale ofDairy Products, Eggs, Oils and Fats Sectoras well as the Wholesale of Computers Sector witnessed improvement in their wholesale activity.

Despite the deterioration in commercial activity, the “Intention to Invest Component” revealed that there are no clear intentions to disinvest in the wholesale trade sector in the near future. The observed results also indicate that the Household Electrical Equipment Sector; Dairy Products, Eggs, Oils and Fats Sector; Computers Sector; Books, Magazines, and Newspapers Sector; as well as Importers and Agents of Pharmaceuticals Sectorshow positive intentions to invest.

The “BTA–Bankmed InvestmentIndex”has become an important indicator of the activity in the commercial sector as it assists the caretakers in making educated decisionsin their future inve

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