Research Briefing | Aug 5, 2021

MENA | July PMIs, Oman’s electricity subsidies, Iran inflation

Copy of Copy of Copy of Ipad Frame (59)

The PMIs for Saudi Arabia, the UAE and Qatar all remained in expansionary
territory in July at 55.8, 54.0 and 52.2 respectively. Both the UAE and Qatar’s
PMI rose on the back of stronger demand, but Saudi Arabia’s PMI fell for the
first time in four months.

What you will learn:

  • The Omani government is set to reconsider plans to remove electricity
    subsidies following complaints over the significant increase in May and June bills, with the authorities keen to avoid the clashes seen earlier this year due to worsening economic conditions and the current unemployment crisis.
  • Iran’s headline inflation slowed in July to 43.7% y/y from 47.7% in June but remains high despite a decline in food and housing and utility price inflation rates.
  • Saudi Arabia’s headline PMI declined for the first time in four months to 55.8 in July from 56.4 in June but remained well above the 50 no-change mark.
Back to Resource Hub

Related Services

Post

BoJ to raise its policy rate cautiously to 1% by 2028

We now project that the Bank of Japan will start to raise its policy rate next spring assuming another robust wage settlement at the Spring Negotiation. If inflation remains on a path towards 2%, the BoJ will likely raise rates cautiously to a terminal rate of around 1% in 2028.

Find Out More

Post

Japan inflation to rise to 1.8%, but downside risks are high

Reflecting a surprisingly strong Spring Negotiation result and weaker yen assumption, we have upgraded our baseline wage and inflation forecasts. We now project higher wage settlements will push inflation towards 1.8% by 2027. Uncertainty is high, however.

Find Out More