Saudi Arabia’s government this week directed the state oil giant Aramco to suspend plans to raise oil production capacity, but this won’t necessarily stop Aramco from ramping up actual output in the next few years. Elsewhere, the strike on a US base in Jordan highlights the risks that Jordan’s economy faces the Israel-Hamas conflict from spreading – in particular through the tourism sector which makes up 10% of GDP. And in Tunisia, the news that the central bank will start to finance the government’s budget deficit risks fuelling inflation, leading to a more disorderly fall in the currency and hastening a sovereign default.
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