Arab stock markets improved by 2.9% and Gulf Cooperation Council equity markets rose by 2.5% in the first two of months 2018, relative to increases of 1.8% and 0.6%, respectively, in the same period of 2017. In comparison, global equities increased by 0.9%, while emerging market equities improved by 2.3% in the covered period. Activity on the Khartoum Stock Exchange jumped by 11.1% in the first two months of 2018, the Iraq Stock Exchange grew by 9.4%, the Tunis Bourse rose by 7.1%, the Casablanca Stock Exchange expanded by 6%, the Boursa Kuwait improved by 5.7%, the Abu Dhabi Securities Exchange and the Damascus Securities Exchange increased by 4.5% each, the Amman Stock Exchange grew by 4.4%, the Beirut Stock Exchange rose by 3.5%, the Egyptian Exchange expanded by 3%, the Bahrain Bourse improved by 2.9%, the Saudi Stock Exchange expanded by 2.7%, the Palestine Exchange increased by 1.7% and the Qatar Stock Exchange grew by 1.5%. In contrast, activity on the Dubai Financial Market dropped by 1.9% and that on the Muscat Securities Market regressed by 1.9% in the covered period. In parallel, activity on the Tehran Stock Exchange increased by 2.5% in the first two months of 2018.

Source: Local stock markets, Dow Jones Indices, Byblos Research

European credit insurance group Credendo indicated that the public debt level in Sub-Saharan African (SSA) economies has been rising since 2014, with the debt level in SSA's oil-exporters increasing at a faster pace. It considered that SSA economies are facing difficulties in coping with the higher debt level, given their elevated debt servicing costs and weak revenue collection capacity. It noted that the region’s public debt level reached 45% of GDP at the end of 2017, up from 32.2% of GDP at end-2014, due to wide structural fiscal deficits. In this context, it said that 23 out of 48 SSA countries had a fiscal deficit that was wider than 5% of GDP in 2016, mainly due to their large investment programs, the drop in global oil prices and lower fiscal revenues, compared to five countries during the 2011-13 period. Also, Credendo pointed out that a large number of SSA economies has been shifting away from expensive domestic debt towards external borrowing, which increased the region’s median external debt level from 22.8% of GDP at end-2007 to 41.2% of GDP at the end of 2016. 

Source: Credendo

Figures released by the Central Bank of Jordan indicate that credit facilities extended by commercial banks in Jordan totaled JD24.8bn, or $34.9bn, at the end of 2017, constituting an increase of 8.1% from JD22.9bn at end-2016. Credit facilities were equivalent to 87% of GDP in 2017 compared to 83.5% of GDP in 2016. Credit in foreign currency accounted for 10.5% of the total at the end of 2017, relative to 11.9% a year earlier. The resident private sector accounted for 87.9% of total credit at end-2017 relative to 86.9% a year earlier. The distribution of credit by sector shows that construction represented JD6.6bn or 26.7% of the total at end-2017, up from 25.4% a year earlier; while general trade accounted for JD4.2bn or 17.2% of the total relative to 17.8% at the end of 2016. 

Source: Central Bank of Jordan, Byblos Research