Gulf Oil and Gas accountACCOUNT

Africa Economy in August 2013

Source: OPEC 9/5/2013, Location: Africa

Share |
Political unrest is hindering economic potential across North Africa. Ongoing developments in Egypt have paralysed that country’s economic activities. Tourism — a crucial sector — is receiving a significant hit, sharply declining over the past two months, normally the peak summer tourism period. Financial and energy support from Gulf Cooperation Council (GCC) countries is playing a critical role in backing the Egyptian pound. It had a relative appreciation as a result of an increase in dollar reserves to over $20 billion immediately after receiving governmental deposits from Saudi Arabia and the United Arab Emirates. Egypt’s PMI slipped to 41.7 in July, down substantially from 47.5 in the previous month. The survey signalled an acute plunge in both output and new orders, due to political uncertainty. Furthermore, the survey showed a further decline in the workforce and in purchasing activity.

The reserve bank of South Africa trimmed its 2013 GDP growth forecast last month to 2% from 2.4%. It also kept its benchmark lending rate unchanged for the 12th consecutive month at 5%, the lowest level for more than 30 years. The reserve bank has little room to use monetary policy as an economic revival tool due to increasing inflation stemming from rising fuel prices and the declining rand. Inflation increased slightly at a rate of 5.54% in June, up from 5.46% the month before. The decelerating demand for manufactured exports from Europe and strikes in the mining industry are reducing revenues in Africa’s biggest economy. To accommodate smaller revenues, the government is lowering spending for the next three years and aiming to lower this year’s fiscal deficit from around 5.2% of GDP last year to 4.6% through to March 2014. In June 2013, South Africa’s credit growth slowed from 9.1% to 8.9%. This is the second consecutive fall in borrowing growth by households and companies. It is expected that high existing personal debt will discourage consumers from applying for more credit. South Africa’s PMI improved in July to 52.2 from 51.6 the previous month, mainly as a result of new sales orders climbing in the same month.

Economics/Financial Analysis News in Egypt >>

Egypt >>  5/14/2018 - Last week, the Minister of Energy of Cyprus, Mr. George Lakkotrypis, and the Minister of Petroleum and Mineral Resources of Egypt, Eng. Tarek El Molla...
Libya >>  5/13/2018 - Libya’s offshore Bahr al-Salam gas field has resumed operations with production of 380 million cubic feet per day, state firm NOC said after completin...

Egypt >>  5/10/2018 - Eni announces the start-up of the third production unit (T-2) of the Zohr project, increasing the installed capacity to 1.2 bcfd. Zohr is now producin...
Egypt >>  5/3/2018 - Eni announces an oil discovery on the A-2X exploration prospect located in South West Meleiha license, in the Egyptian Western Desert, some 103 Km Nor...

Morocco >>  5/2/2018 - Shearwater GeoServices (Shearwater) has been awarded a contract to acquire 3D seismic for Genel Energy in the Sidi Moussa license offshore Morocco. Ad...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Egypt Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 |

More News


Oil & Gas Companies in Egypt >>

Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.