Dubai GDP, tourism, Egypt & the IMF, Lebanon’s crisis

Dubai’s economy contracted sharply in Q1 but more timely figures show that the downturn deepened in Q2 and we expect the recovery to be weak. Elsewhere, the inclusion of Morocco and Tunisia on the EU's list of safe travel destinations does not mean that their crippled tourism sectors are out of the woods. Meanwhile, the IMF appeared to endorse the Egypt’s FX intervention in March and April but it is now pushing for the authorities to loosen their grip on the pound. Finally, Lebanon’s discussions with the Fund are on the brink of collapse.