The Middle East Economy

Steady reform and targeted growth bolstered investor confidence in Jordan’s economy in 2015, as weaker oil prices helped to support a stronger balance of trade and maintain low levels of inflation. 

Falling energy prices weighed on Qatar’s economic performance in 2015, with lower demand across key export markets and tougher competition producing a sharp drop in government revenues. However, double-digit growth for non-hydrocarbons helped foster economic momentum, expected to continue into 2016.

The return to single-party government and a commitment to fast track economic reforms have boosted investor confidence in Turkey, though rising inflation and low growth rates could hamper the prospect of renewed fiscal and political stability.

Dramatic news from Chinese markets grabbed headlines worldwide last month, while also leaving many emerging markets (EM) analysts wondering what the full fallout from Shanghai and Beijing would be, and in particular what this would mean here in the Gulf.

For many months now, investors worldwide have been putting US Federal Reserve Chair Janet Yellen’s every statement under the strongest of analytical microscopes. A global search amongst her words for signs and portents regarding the future of interest rates has long been under way – with July’s meeting of the Federal Open Market Committee (FOMC) prompting yet another round of speculation.

The final draft of a new economic programme, targeted for the end of August, will set a new path for socio-economic development in Jordan, as part of a wider ten-year blueprint launched in May.