Beirut Traders Association and BankMed released the results of “Beirut Traders Association – BankMed Investment Index,” for the second 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 reveals the investment climate in Lebanon shedding light on the commercial activity and overall economic situation. The results for the second quarter of 2014 indicate that the “Turnover Component” of the index recorded a quarter-on-quarter real improvement. The “Intention to Invest Component” of the index reflected 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 improvement amounting to 7.4% in comparison with the first quarter of 2014. This improvement is attributed to the rising consumption of residents, expatriates, refugees, and Arab tourists, especially following the uplifting of travel bans. This led to the expansion of retailers’ sales and consequently resulted in an increase of retailers’ orders.
According to the published results, this improvement was mainly witnessed in several sectors, especially the ones related to food products. On the other hand, the Importers and Agents of Pharmaceuticals Sector and Phone and Communication Equipment Sector saw a steep decline in sales due to structural factors rather than situational ones; such as the restructuring of medicines’ prices by the Ministry of Public Health and the absence of new mobile phone releases during that period.
As the commercial activity improved, the “Intention to Invest Component” revealed that there is no clear intention to disinvest in the wholesale trade sector in the near future. The observed results indicate that only three sectors have shown willingness to disinvest: Livestock Sector, Phone and Communication Equipment Sector, as well as Medical Equipment and Spare Parts Sector.
The “BTA-BankMed Investment Index” has become an important indicator in the activity in the commercial sector as it assists the caretakers in making educated decisions in their future investments.