Economy

A US offer to back Jordanian bond issues may help lower the Kingdom’s borrowing costs and boost confidence in the country’s securities, which has been dented by regional instability that has slowed economic growth.

The local economy is struggling to overcome twin hurdles – an inflated unemployment rate that siphons off state funding for social services and a lack of skilled workers to fill the many positions that are currently vacant.

Ghana’s economy is expected to see robust growth this year, at around 8.5%, but so too will public spending. The 20% increase in government expenditures should help sustain social services and infrastructure investment, and underwrite activity in the energy, agriculture and construction sectors. However, there are concerns the country may not be pursuing fiscal consolidation aggressively enough, and 2013 will see a wide deficit and rising debt.

With programmes aimed at boosting education and rural development gaining pace, Sabah’s government will be hoping that its move to calm investors by setting up a regional security zone following an incursion in February proves effective.

A landmark flight from Baghdad that touched down in late February at Kuwait International Airport looks set to usher in a new era of stronger economic ties between the two Gulf neighbours. The resumption of direct air-travel between Iraq's capital and Kuwait, which is building on a steadily rising flow of traffic between the two countries, spells good news for business leaders.

While growth in Brunei Darussalam’s economy has slowed in recent years, a rising contribution from the non-oil and gas sectors, particularly agriculture, indicates that efforts to accelerate diversification are producing results.