
by Dana Halawi BEIRUT, (Xinhua) — Lebanon’s merchants took a hit in 2021 by the country’s unprecedented economic and financial crisis with 35 percent of them shutting down their stores or some branches, according to the Beirut Traders Association. Adnan Rammal, representative of the trade sector in the Economic and Social Council, told Xinhua that a large number of merchants had to close their stores last year as they were unable to cover the expenses in light of the drop in sales from 50 to 90 percent, varying among different sectors. According to Rammal, the sectors that were mostly impacted include furniture, household appliances, electronics and carpets, and the demand for food has also dropped by 40 percent.
Over the past two years, Lebanon has witnessed an unprecedented financial crisis amid the shortage of U.S. dollar, which prompted a steep depreciation of the Lebanese pound. As a result of the collapse of the local currency, citizens saw an obvious devaluation of their salaries. Most of them are employed by the public sector and get paid in local currency, while only an approximate of 20 percent of the Lebanese receiving their salaries in U.S. dollars. Moreover, the financial crisis forced banks to impose heavy restrictions on withdrawals from deposits, which has deteriorated people’s purchasing power. Mohamad Rayes, owner of a men’s clothes shop in Hamra, told Xinhua that sales at his shop dropped by over 80 percent compared to the pre-crisis years of 2017 and 2018, as people have been focusing their consumption on necessities. “If we do not see any improvement in demand during the coming summer season, we will have to close doors and lay off employees,” he said.









