Video|26 September 2024

MENA – Is Lebanon’s Inflation Easing While the UAE Strengthens US Ties?

Elliot Garside

Assistant Economist

Amid heightened regional tensions, Lebanon’s inflation rate eased marginally to 35% in August – the lowest reading in over four years. The deceleration was due to the fall in food and transportation prices which offset the acceleration in prices of housing and recreation. We project annual inflation to average 46% in 2024, although risks are skewed to the upside in light of the escalated conflict with Israel.

On Monday, the UAE president began his official visit to the US. The engagement aims to enhance bilateral cooperation in several areas such as trade, energy, and technology. In 2023, bilateral trade between the UAE and the US equated to 32 billion dollars. We expect the UAE’s non-oil exports to grow by 10% in 2024.

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