Dear colleagues,

The dust has settled down but the landscape has dramatically changed.

On the international scene, we have witnessed a major change in the fabric of international economics, while the engine of growth has shifted from the western hemisphere to the eastern part of the world; Central banks cannot decide which enemy to fight first: Inflation or stagnation.

Inflation is showing its teeth in different forms; lax monetary policy in the west coupled with natural disasters like flooding in Australia or extreme cold in Europe, topped by increased demand from emerging economies, have contributed to higher commodities prices, especially food.

Spontaneous riots erupted in the less fortunate MENA region triggered by higher food prices and extending to demands of more political freedom and even regime changes.

Stagnation, high unemployment and large public deficits are the main concerns of the monetary authorities of the west, where central bankers are trying to accommodate their economies through cheap credit while keeping an eye on the rocketing commodities prices.

Therefore, while countries on the eastern and southern side of the planet, nicknamed BRIC countries, are enjoying booming economies with an average growth rate of over 8%, western counterparts compete in pulling their economies out of the doldrums through increased exports.

On the local scene, despite the political uneasiness, the markets remained calm and the banking system enjoyed growth in total deposits. Interest rates on LBP have drifted lower and our stock market has stabilized.

This state of affairs calls for vigilance, as caution was never the synonym of cowardice; on the contrary, it is the offspring of wisdom. While all these scenarios unfold, let us tread water until the storms calm down.

As for our association, we have witnessed a healthy increase in our membership and are looking forward for an even greater expansion aiming to become the largest association in our region.

Your colleague
Nakhlé Khoneisser
President, ACI Lebanon