The Beirut Traders Association has warned that several businesses could shut down over the deteriorating economic situation in the country.
BTA-Fransabank Retail Index that was released this week was a reflection of the dire conditions that the trade sector is suffering from.
The index showed a slide of 45.71 for the second quarter of 2018 compared to the level of 46.31 for the first quarter.
This reflects a continuous drop since the base index was 100 fixed at the fourth quarter of 2011.
The consolidated real retail turnover figures have also posted a sharp decline between the second quarter of 2017 and the second quarter of 2018, reaching 9.74 percent.
The main objective of the index is to provide the trading community with a scientific tool that reflects the trend that is witnessed at the level of retail trade on a quarterly basis, bearing in mind that this index is calculated based on actual data collected from a representative sample of companies distributed into all retail goods and services trading sectors.
Companies were asked to provide their turnover on a yearly basis by brackets. They were also asked to provide quarterly percent change of their turnover for the quarter under review, compared to the same quarter of the previous years, and to the previous quarter of the same year.
The index said that current figures and indices are not encouraging. For instance, the Consumer Price Index (CPI) for the second quarter of this year has reached the level of 7.61 percent in comparison to its level of the same quarter of last year.
Given the worsening situation, Nicolas Chammas, the president of the Beirut Traders Association, has urged the authorities to “salvage” the vital trade sector, which he said contributes to no less than a third of the country's Gross Domestic Product (GDP).
He also called for the swift formation of a new government with competent members who would take immediate action to revive the sector and other economic sectors.
“The political situation before and after the parliamentary elections” that were held in May, in addition to the wait-and-see approach adopted by many on the formation of the new government, have not had any positive effects on the market, he said.
A series of new taxes made a further negative contribution, he added.
A weak tourism season, the deteriorating purchasing power of the Lebanese families, and rising inflation, have also limited growth.
Despite the negative indices, the business community is all hopes that the crisis would end once a new government is formed.
