Iran and Saudi Arabia took further steps to sever commercial ties on Thursday, as Tehran announced a ban on imports from Saudi Arabia and Saudi groups called for boycotts of Iranian products.
Iran’s government said it had forbidden imports from Saudi Arabia after a cabinet meeting chaired by President Hassan Rouhani on Thursday morning. The cabinet also reaffirmed a ban on Umrah pilgrimages to Mecca that was imposed in April. Saudi Foreign Minister Adel al-Jubeir said on Monday that the kingdom was halting air traffic and trade links with Iran, although none of the few Saudi companies with interests in Iran have yet to announce changes to their operations. Saudi Chamber of Commerce leaders said a trade boycott of Iranian products would cause the kingdom little economic harm. [Reuters, 1/7/2016]
Egypt plans to impose new regulations to reduce low-quality imports in an effort to shore up its foreign currency reserves and protect local industries. The regulations will require that foreign factories exporting mostly consumer goods register with Egyptian authorities and provide documentation of licenses and proof of inspection. The regulations would come into effect in late February and cover a wide range of goods, including dairy products, cosmetic items, soft drinks, chocolate, children toys, and furniture. Economists said the decision was aimed at reducing smuggling and informal import activity. One economist estimated that the new import restrictions would help Egypt save about $7 billion annually. However, Head of the Importers Division at the Cairo Chamber of Commerce Ahmed Shiha said the regulations violate agreements under the World Trade Organization, circumventing laws that regulate trade and increase the risk of monopoly. [AP, 1/6/2016]
The World Bank has revised its growth forecast for Turkey in 2016 and 2017 to 3.5 percent from 3.9 percent and 3.5 percent from 3.7 percent respectively. Growth in the country is estimated to have accelerated to 4.2 percent in 2015 from 2.9 percent in 2014, the bank said in its Global Economic Prospects report. “Economic activity has been substantially above expectations, despite geopolitical tensions, as well as continuing policy uncertainty that was amplified by the inconclusive June elections,” the report noted. However, the bank warned that “policy uncertainty remains, as key economic policy decisions of the new government are awaited.” The World Bank said regional growth in the Middle East and North Africa would accelerate to 5.1 percent in 2016, compared to 2.5 percent in 2015. [Anadolu Agency, Hurriyet, 1/7/2016]
Algeria’s energy export volumes dropped 2.8 percent in the first nine months of 2015 due to a 1.9 drop in overall energy output and a 7.5 percent rise in domestic consumption, the Energy Ministry said. The government had already said energy earnings would fall by 50 percent to $34 billion in 2015 before reaching $26.4 billion this year, pushing down reserves to $121 billion. Algeria’s Central Bank Governor Mohamed Laksaci on Wednesday said falling energy revenue would cause foreign exchange reserves to drop to $152.7 billion in the third quarter of 2015 from $178.94 billion at the end of 2014. Laksaci also said the central bank would begin refinancing banks starting in February. [Reuters, 1/6/2016]
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Turkey to focus on structural reforms for sustainable economic growth | Daily Sabah
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Turkey says economic consequences of Russian sanctions are negligible | Anadolu Agency
Iran bans imports from Saudi Arabia, faces Saudi boycotts
Iran and Saudi Arabia took further steps to sever commercial ties on Thursday, as Tehran announced a ban on imports from Saudi Arabia and Saudi groups called for boycotts of Iranian products. Iran’s government said it had forbidden imports from Saudi Arabia after a cabinet meeting chaired by President Hassan Rouhani on Thursday morning. The cabinet also reaffirmed a ban on Umrah pilgrimages to Mecca that was imposed in April. Saudi Foreign Minister Adel al-Jubeir said on Monday that the kingdom was halting air traffic and trade links with Iran, although none of the few Saudi companies with interests in Iran have yet to announce changes to their operations. Saudi Chamber of Commerce leaders said a trade boycott of Iranian products would cause the kingdom little economic harm. [Reuters, 1/7/2016]
Egypt to impose import rules to shore up reserves
Egypt plans to impose new regulations to reduce low-quality imports in an effort to shore up its foreign currency reserves and protect local industries. The regulations will require that foreign factories exporting mostly consumer goods register with Egyptian authorities and provide documentation of licenses and proof of inspection. The regulations would come into effect in late February and cover a wide range of goods, including dairy products, cosmetic items, soft drinks, chocolate, children toys, and furniture. Economists said the decision was aimed at reducing smuggling and informal import activity. One economist estimated that the new import restrictions would help Egypt save about $7 billion annually. However, Head of the Importers Division at the Cairo Chamber of Commerce Ahmed Shiha said the regulations violate agreements under the World Trade Organization, circumventing laws that regulate trade and increase the risk of monopoly. [AP, 1/6/2016]
World Bank cuts Turkey growth forecasts
The World Bank has revised its growth forecast for Turkey in 2016 and 2017 to 3.5 percent from 3.9 percent and 3.5 percent from 3.7 percent respectively. Growth in the country is estimated to have accelerated to 4.2 percent in 2015 from 2.9 percent in 2014, the bank said in its Global Economic Prospects report. “Economic activity has been substantially above expectations, despite geopolitical tensions, as well as continuing policy uncertainty that was amplified by the inconclusive June elections,” the report noted. However, the bank warned that “policy uncertainty remains, as key economic policy decisions of the new government are awaited.” The World Bank said regional growth in the Middle East and North Africa would accelerate to 5.1 percent in 2016, compared to 2.5 percent in 2015. [Anadolu Agency, Hurriyet, 1/7/2016]
Algeria’s energy export volumes fall in first nine months of 2015
Algeria’s energy export volumes dropped 2.8 percent in the first nine months of 2015 due to a 1.9 drop in overall energy output and a 7.5 percent rise in domestic consumption, the Energy Ministry said. The government had already said energy earnings would fall by 50 percent to $34 billion in 2015 before reaching $26.4 billion this year, pushing down reserves to $121 billion. Algeria’s Central Bank Governor Mohamed Laksaci on Wednesday said falling energy revenue would cause foreign exchange reserves to drop to $152.7 billion in the third quarter of 2015 from $178.94 billion at the end of 2014. Laksaci also said the central bank would begin refinancing banks starting in February. [Reuters, 1/6/2016]
Also of interest
US-led air strikes cut ISIS oil revenues by 30 percent | Reuters
Oman announces new reserve buffers, may force capital increases | Reuters
Iraq to revive talks to boost production at Nassiriya oil field, build refinery | Reuters
Egypt’s steel producers cut prices, mirror low global cost | Ahram Online
Egypt’s central bank postpones decision on interest rates | DNE
Tunisia’s inflation rate edges down to 4.1 percent in 2015 | TAP
In Turkey’s borderlands, Syrians show refugees’ economic potential | Reuters
Turkey to focus on structural reforms for sustainable economic growth | Daily Sabah
Turkey says economic consequences of Russian sanctions are negligible | Anadolu Agency