Vývoj inflace v Libanonu – příčiny a dopady na ekonomiku země

Lebanon, the former ‘Switzerland of the Middle East’, is enduring an unprecedented economic meltdown, battling several overlapping crises simultaneously. Yet it faces another serious problem – hyperinflation. The consumer prices of goods and services escalated by hundreds or thousands of percent, and the annual inflation rate surged to 154% in 2021. This bachelor’s thesis aims to evaluate the development of the inflation in Lebanon, focusing on the recent period from 2019 to the present day. For this purpose, I formulated two research questions: What are the primary causes of high inflation in Lebanon? And what impacts does it have on the Lebanese economy? The key findings suggest that the build-up of inflation is rooted in strong dependency on massive dollar inflow and a lack of adequate economic policies. Furthermore, the results show a significant increase in retail prices across all categories, accompanied by real income decline and deterioration of purchasing power. Additionally, my research outcomes confirmed that a rise in inflation induces an increase in poverty.