Middle East & North Africa Economics

Middle East Chart Book

30 October, 2018

Political risks back on the radar

Political developments have re-emerged as a key risk to the region’s economic outlook in recent weeks. The economic fallout for Saudi Arabia from the Khashoggi scandal should be limited, at least in the near-term. The threat of sanctions has weighed on Saudi financial markets but the country’s strong balance sheet means that the dollar peg will remain intact and we still expect GDP growth to accelerate over the coming quarters. Saudi Arabia is not the only country where political risks are brewing

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