Lebanon’s leaders face economic-credibility problem

30.06.2011                      28.Siwan, 5771                      Jom Kippur Katan

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Lebanon’s leaders face economic-credibility problem

Analysts lower outlook, stock market falls as Mikati's Hezbollah-dominated government takes office.

Lebanon may finally have a new government ending a nearly half-year political vacuum, but its got a lot of catching up to do in order to set right an economy upset by regional turmoil and domestic uncertainty that has kept investors and tourists at bay.
But economist and investors are doubtful that the country’s new leadership – a 30-member team of ministers dominated by Shi'ite Islamist movement Hezbollah – has the political wherewithal to address the problems. Since Prime Minster Najib Mikati unveiled his cabinet June 13, analysts have been lowering the forecast for economic growth while market capitalization on the Beirut Stock Exchange has declined about 3%….