Jordan’s Central Bank announced it would cut its benchmark lending rates by 25 basis point. This marks the first reduction since last june, following a record build-up in foreign reserves and an improved inflation outlook. The bank attributed its decision to a combination of slowing inflation, the increased attractiveness of dinar-denominated assets and a big improvement in the current account, which it said reflected robust economic growth and a record level of foreign exchange reserves.
[Reuters, 2/2/2015]
Egypt’s non-oil private sector shrinks in January
Egypt’s non-oil private sector shrank in January for the first time since last July. Both output and new orders fell slightly. A corporate survey showed that poor weather conditions and the economic crisis in Russia, which hit export orders, were partially responsible for weaker demand in January. According to HSBC senior economist “the numbers show that Egypt’s recovery remains weak and vulnerable to downside risk.” [Reuters, 2/3/2015]
Iraq oil field output suspended after IS fighting
Production at an oil field near the northern Iraq city of Kirkuk remained suspended after incurring severe damage during a weekend attack by Islamic State (ISIS or ISIL) insurgents. Khabbaz is a small oilfield with a maximum production capacity of 15,000 barrels per day; it was producing around 10,000 bpd before the attack. Hit by oil prices that have more than halved since June, Iraq is working to boost its shipments to make up for lost revenues dependent mainly on oil exports. [Reuters, 2/2/2015]
Tunisia’s FDI still in freefall
The flow of foreign investment into the Tunisian economy dropped by 5.8 percent to 1.878,6 million Tunisian dinars (MTD) in 2014. These investments are spread at a rate of 1718.1 MTD of foreign direct investment (FDI) and 160.5 MTD of portfolio investment. FDI were directed mainly towards the energy sector. However, investments in this activity have significantly decreased compared to 2013. [African Manager, 2/2/2015]
Also of Interest:
Economic researcher for the Central Bank of Yemen remains optimistic | Yemen Times
Algeria faces “state of crisis” as oil prices fall | FT
Egypt to present thirty investment projects at economic summit | Daily News Egypt
Saudi investments in Morocco to exceed $4 billion by 2016 | Morocco World News
Libya’s Tobruk economy ministry to use flour reserves | Libya monitor (subscription)