Skip to main content

Morocco’s drought, Egypt’s dollar sukuk

The effects of another severe drought in Morocco have weighed on growth, pushed up inflation and fuelled pockets of unrest. Supermarkets in Europe have felt the impact too, with many reporting shortages of food products that are usually sourced from the Kingdom. But strong rainfall at the start of this year provides hope that the worst may soon be over. Elsewhere, the Egyptian government sold its maiden dollar-denominated sukuk bonds this week but at the expense of paying a high coupon. This will contribute to higher debt servicing costs and reaffirms that the government will need to keep fiscal policy tight in order to ensure debt sustainability. 

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access