Rumours suggest that OPEC will discuss the possibility of oil output cuts this weekend, although a decision seems highly unlikely at this stage. But if oil prices fall further, as we expect, production cuts could become a real possibility next year, which would act as a drag on GDP growth in the Gulf. Elsewhere, the latest twist in Tunisian politics means that the central bank will need to hike interest rates further over the coming months. And comments from Egypt’s President al-Sisi suggest that cutting the public sector wage bill will remain at the heart of fiscal consolidation efforts.
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