Beirut Traders Association and Bankmed released the results of “Beirut Traders Association – Bankmed Investment Index,” for the first 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 first quarter of 2017 indicate a continued deterioration in the “Turnover Component” reflecting a state of stagnation within consumer activity in light of the uncertainty that is linked to a number of political and economic issues which remain unresolved. However, the “Intention to Invest Component” was characterized by some relative positivity, especially within sectors that have not been affected by the general mood.
The “Turnover Component,” which tackles the activity during the quarter under study, recorded a real decline of 8.23% in comparison with the first 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 Construction Materials, the Wholesale Sector of Phones and Communication Equipment, and the Wholesale Sector of Computers have recorded a significant slump in their wholesale activity. On the other hand, the Wholesale Sector of Different Food Products and Wholesale of Different Consumer Goods as well as Wholesale Sector of Importers and Agents of Pharmaceuticals as well Wholesale of Books, Magazines, Newspaper and Stationary have witnessed a slight improvement in their wholesale activity.
With respect to the “Intention to Invest Component,” the computed results indicate that despite market stagnation, there are no sectors that expressed an intention to decrease investment. On the contrary, there are some sectors that have revealed an intention to increase their investments such as Wholesale Sector of Dairy Products, Eggs, Oils and Fats, the Wholesale of Pastry, Chocolate, Sweets, Jams, and Kernels, and the Wholesale Sector of Paper Products.
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.