Signs of recovery in North Africa

Following a difficult few years, the latest data have provided further evidence that things are improving in North Africa. It looks like growth in both Tunisia and Egypt accelerated over the first half of this year. Admittedly, growth in Morocco – previously the bright spot in the region – slowed. But this was due to a slump in the agricultural sector. Other sectors of the economy, including manufacturing and tourism, have held up well. What’s more, the recent renewal of Morocco’s precautionary IMF deal should ease concerns about the risks posed by country’s large current account deficit.