IMF deals and Gulf aid spare MENA’s non-oil producers

In spite of their large current account deficits, the MENA region’s non-oil economies have stayed out of the spotlight during the recent turmoil in EM financial markets thanks, it seems, to IMF backstops and aid from the Gulf. So long as these remain in place, the region should be able to withstand market turbulence related to concerns about tighter global monetary conditions relatively well. However, volatile domestic political situations will continue to pose a major downside risk.