In the Wednesday (8/5) edition of RGE Monitor, the analysts at Roubini Global Economics (headed by Nouriel Roubini, aka Dr. Doom), suggested that there are in fact some regional and national bright spots despite a global oversupply of overwhelmingly uninspiring economic indicators. Since we at TradeFlow21 are primarily interested in accessing markets in the Middle East and North Africa, we’ll re-post a summary of what RGE had to say about the region:

Overall, countries in the Middle East and North Africa (MENA) region were relatively sheltered from the financial spillovers, but suffered from reduced demand. Expansionary fiscal policies throughout the region and effective – if belated in some cases – financial sector support offset the export and investment weakness. The GCC countries most reliant on foreign financing to fund credit expansion, such as the UAE, are suffering the sharpest effects. However, past savings provide a cushion. In the long-term the region’s growth outlook depends on the price and effective deployment of its hydrocarbon endowments.

Among the countries that RGE specifically mentioned in its regional summary include Egypt, Qatar, and Lebanon. Egypt seems to be managing quite well partially thanks to its counter-cyclical monetary and fiscal policies. Cylicality (pro-cylicality in particular) is something that was discussed as a feature in the July edition of our own Trade & Transactions. (See our About Us page for contact information if you’d like to subscribe). Meanwhile, Qatar is expected to be one of the fastest growing economies in the world, according to RGE. The Qatari government has made the right moves thus far to shore up the domestic banking and property sectors, while its sovereign wealth fund is eying outbound opportunities. Finally, Lebanon, one of the few positive exceptions among so-called frontier markets (along with Morocco and Tunisia) has had sustained success in attracting capital inflows. At the same time, stability has allowed for growth in real estate and tourism, says RGE.

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