The current economic crisis in Lebanon is creating long-term scars on the country, making chances of imminent economic recovery unlikely.  Lebanon’s main advantage - its human capital, especially the skilled youth population - is deteriorating, further endangering the country’s future. The youth in Lebanon are experiencing rising unemployment and poverty rates and growing deprivation across all dimensions, leading to an unprecedented brain drain and increase in migration of the skilled but also low-skilled youth. Skills mismatch is anticipated to worsen with time as the country is facing a major education crisis, resulting in increasing dropout rates. The entrepreneurship support ecosystem is shrinking, and state institutions are crumbling, while the banking system is dysfunctional. The youth of Lebanon are therefore left alone and are struggling to find ways to sustain their livelihoods.

This technical paper starts with an analysis of the situation of youth amidst one of the worst financial and economic crises in the world. The paper goes on to examine the coping and adaptation strategies that youth entrepreneurs have adopted over the last two years to survive. A thorough assessment of the impact of the financial crisis on the major economic sectors is then provided along with the identification of emerging trends and opportunities in each of those sectors.