Beirut, August 2017: Beirut Traders Association and Bankmed released the results of “Beirut Traders Association – Bankmed Investment Index,” for the second quarter of 2017. 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, particularly the phase that preceded the presidential elections in Lebanon. The results for the second quarter of 2017 indicate a continued deterioration in the “Turnover Component” reflecting a state of stagnation within consumer activity despite the improvement in the political scene following the passing of a new electoral law. However, the “Intention to Invest Component” continued to be characterized by some positivity, revealing merchants’ intentions to increase their investments.
The “Turnover Component,” which tackles the activity during the quarter under study, recorded a real decline of 3.53% in comparison with the second quarter of 2016. This drop is largely attributed to the continued reduction in the volume of orders placed by retail merchants during this period. According to the published results, the Wholesale Sector of Phones and Communication Equipment, the Wholesale Sector of Computers, and the Wholesale Sector of Construction Material recorded a significant slump in their wholesale activities. On the other hand, the Wholesale Sector of Pastry, Chocolate, Sweets, Jams and Kernels and the Wholesale Sector of Clothes witnessed a slight improvement in their wholesale activities.
With respect to the “Intention to Invest Component,” the computed results indicate that despite market stagnation, most sectors expressed an intention to increase their investment except for the Wholesale Sector of Dairy Products, Eggs, Oils and Fats. Accordingly, most of the remaining sectors have revealed an intention to increase their investments especially those dealing with foodstuff.
The “BTA – Bankmed Investment Index” has become an important indicator of the activity in the commercial sector as it assists the caretakers in making educated decisions in their future investments.