Interpreting Middle East Economic News and Analyzing Market Trends

Category: Cyprus

Deflation, defaults, social unrest and other ‘surprises’ waiting for us in 2015

Financial Crisis - Slideshare

Photo: Slideshare.net

    

As 2014 comes to an end, we wanted to take a look back at events and trends over the past few years and give you some of our thoughts on what we expect to see in 2015.  We decided to make a list… a top 10 list of ‘surprises’ we expect to see in the coming year.  Here they are… enjoy…  

     

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Cyprus goes from bad to worse: Tourists stay away and Russian money heads to the Virgin Islands

Empty beach in cyprus

        

The good news this past week was that the recession in the Eurozone is over.  Click here for the Bloomberg article and here for the New York Times article.  I’m sure the people in Cyprus are relieved… as are the people in Greece, Ireland, Spain and Portugal.  The reality is that the recession (more like depression) is just beginning in countries like Cyprus.  Tourist arrivals are down, Russian money is moving to the Virgin Islands and capital controls are strangling what’s left of the economy.

 

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Cyprus Update: Bailout/Bail-in is a total failure

Cyprus Mail - How Much Worse Can it Get

It’s been a couple of months since we covered Cyprus so we decided to see how the March bailout/bail-in is going.  We knew it was going to be a failure, but we didn’t realize it would be a textbook case.  Business and economic students will be studying this for decades to come.

 

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Qatar and UAE finally get upgraded to emerging market status while Greece and Morocco go the other way

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Photo: Gulf Business

  Qatar and the UAE finally got upgraded to emerging market status by MSCI.  The move is widely celebrated in the region as the ticket to bringing in foreign institutional investors and increase liquidity in the tiny Gulf markets.  Greece, on the other hand, has gone the other way…

 

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Cyprus Update: Capital controls still in place, economy sinking with no end in sight

http://www.theadvocateweblog.com/wp-content/uploads/2013/03/not-just-cyprus-wake-up-world.jpg

It’s been one month since Cyprus reached a deal with the EU, ECB and IMF (collectively known as the Troika).  The bail out was supposed to save the country from a collapse of its financial system and help build up the economy again.  Instead, the bailout/bail-in is a disaster and the country is nearly forgotten as the Troika moves on to prepare for the next bailout victim.

 

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