Morocco suspends contacts with EU delegation over trade row 

Morocco has suspended contacts with the European Union (EU) delegation in Rabat over a trade dispute, a move that could slow multi-million dollar development projects. The decision came after an EU court last month annulled a 2012 trade agreement with the Morocco, saying it should not include the disputed West Sahara region. Rabat’s decision stopped short of a formal suspension of ties. An EU source said the government remains in regular contact with high level EU officials, including Foreign Policy Chief Federica Mogherini. Two EU sources said the suspension may disrupt around EUR 1.03 billion ($1.12 billion) of funding that the EU has granted to Morocco. The EU funding program includes some EUR 188 million to support Morocco’s advanced status with Brussels, EUR 125 million for education, EUR 100 million in health support, and about EUR 75 million for judicial reforms. [Reuters, 1/28/2016]

 

Tunisia loses third of tourism revenue over ISIS attacks 

Tunisia lost more than a third of its tourism revenues last year after attacks by the Islamic State (ISIS or ISIL), figures showed Thursday. Tourist entries in 2015 dropped by 30.8 percent compared to the previous year and tourism revenues declined by 35.1 percent, the Central Bank of Tunisia (BCT) said. “The national economy in 2015 saw a decline in activity … notably in the industrial and service sectors, which were affected by the terrorist events and despite the success of the political transition,” BCT added. This week, travel operator Thomas Cook canceled all British bookings to Tunisia until October 31, 2016. [AFP, 1/29/2016]

 

Turkey’s trade deficit narrows sharply amid oil slump

Turkey’s annual trade deficit shrank by more than 25 percent to around $63.3 billion in 2015 as a result of low global oil prices, according to the Turkish Statistics Institute. The trade deficit is Turkey’s lowest since 2009. Cheaper energy imports accounted for more than half of the improvement. A weakening currency also helped Turkish manufacturers, but a loss of trade routes offset the benefit. Overall, Turkey benefited from the commodities rout as it narrowed its current account deficit, reducing the need to finance the shortfall with capital inflows, experts said. Analysts said the data from the Turkish Statistics Institute showed a mixed picture for Turkey’s economy. [Bloomberg, Hurriyet, 1/29/2016]

 

Egypt central bank keeps main interest rates unchanged 

The Central Bank of Egypt (CBE) kept benchmark interest rates unchanged on Thursday. The Monetary Policy Committee kept the overnight deposit rate at 9.25 percent and the overnight lending rate at 10.25 percent. The central bank raised interest rates by 50 basis points last month, the first hike since July 2014, citing inflationary pressures. Egypt has been under pressure to devalue the pound but CBE Governor Tarek Amer has led a drive to support the currency despite dwindling foreign reserves. [Reuters, DNE, 1/28/2016]

 

Also of interest

Russian says Saudi Arabia proposed oil output cuts by up to 5 percent | Reuters

Saudi central bank net foreign assets drop 3.1 percent in December | Reuters

Egypt’s government wages see lowest increase in three years | Aswat Masriya

International organizations to support to Egypt’s social health insurance system | DNE

Bahraini business community requires guarantees to invest in Tunisia | TAP

Tunisia’s trade balance deficit shrinks by 1.6 billion dinars in 2015 | TAP

Tunisia’s inflation stabilizes at 4.9 percent in 2015 | TAP 

Tunisia to begin training 8,000 Kasserine youth in ICT sector | TAP

IMF completes third review of Precautionary and Liquidity Line for Morocco | IMF

IMF praises Morocco’s 2015 economic performance | Morocco World News