The latest reading of both initial and continuing jobless claims suggested a marginal softening in what is still nonetheless a tight US labour market. The readings should however be treated with some caution as they tend to be volatile on a week-by-week basis and may have been affected by unseasonable weather. Initial claims rose by 211K in the week ending 4 March, above expectations for a 195K rise, and higher than the 190K the week prior. The uptick in claims were concentrated in California and New York. The rise in claims from New York may have been boosted by a renegotiation of employment contracts that allow school staff to claim benefits during school holidays. Continuing claims rose to 1718K in the week ending 25 February. The was again above both expectations and the previous week’s reading of 1655K.
Egypt’s CPI inflation rose to 31.9% y/y in February, up from 25.8% in January. Prices were 6.5% higher than the previous month. The multiple moves lower by the Egyptian pound against the USD over the past year, alongside strong domestic demand and some residual issues around raw materials costs have all contributed to the acceleration in price growth. Food prices were up 61.8% y/y. Inflation is now at levels last seen in August 2017, in the wake of Egypt’s last IMF-mandated currency adjustment. With the pound still under pressure, Ramadan about to start, and fuel prices having been raised at the start of March, price growth will likely remain strong on a monthly basis, although the pass-through of late-March 2022’s FX move should alleviate some of the y/y pressures from April onwards. The CBE’s next rate decision is due on March 30.
Saudi Arabia published its final Q4 2022 GDP growth figures yesterday, with a modest upwards revision on the initial reading, to 5.5% y/y compared with 5.4% previously. This marked a slowdown from the 10.0% growth averaged over the previous three quarters, as favourable base effects in the oil sector eased and production was cut compared with Q3. This year we forecast headline GDP growth of 3.1% with the non-oil sector driving the bulk of the expansion with 5.5% growth compared with 0.5% growth in the oil sector.
DEWA has said that it has a “clear target” to support Dubai’s Clean Energy Strategy and Net Zero targets thanks to investment to expand the emirate’s renewables capacity. Solar capacity at the Mohammed bin Rashid al Maktoum Solar Park will more than double to 5,000 MW by 2030 from capacity of around 2,000 MW at present, according to DEWA CEO Saeed Mohammed al Tayer, while investment will also carry on at a pumped storage hydropower at Hatta. Along with the investments into renewables, DEWA will also retrofit buildings to improve their energy efficiencies as well as expand the network of electric vehicle charging sites. The UAE has set a target of net-zero carbon emissions by 2050.
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