OPEC MOMR November 2017
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World Economy


OPEC Monthly Oil Market Report – November 2017

Other Asia



, GDP growth exhibited a stable pattern so far this year, with 3Q17 growth at 5.1% y-o-y,

compared to 5.0% in each of the previous two quarters. It is worth noting that government consumption

expenditure returned to growth territory in 3Q17, increasing by 3.5% y-o-y, compared to the contraction of

1.9% y-o-y in 2Q17. GFCF also posted the fastest expansion since 1Q13, increasing by 7.1% y-o-y in 3Q17.

Household consumption was more or less stable at a growth rate of 4.9% in 3Q17. Both exports and imports

showed a steep acceleration in 3Q17, with exports surging by 17.3% y-o-y from 3.6% in 2Q17, and imports

rising by 15.1% y-o-y from 0.2% in 2Q17. Trade went up by 39% y-o-y in 3Q17. Consumer price inflation

eased to 3.6% in October, down from a 3.7% y-o-y increase in the previous month and the lowest in seven

months. The Bank of Indonesia policy rate was unchanged in October from a month earlier at 4.25%. In

2Q17, trade was supportive to growth in Indonesia as net exports of goods and services climbed by more

than 36% y-o-y. While exports increased by 3.4% y-o-y in 2Q17, imports posted slow increase of only 0.6%

y-o-y. GDP registered growth of 5.0% y-o-y in 2Q17, similar to 1Q17.



, GDP posted strong growth of 7.4% y-o-y in 3Q17, up from 6.2% in the previous quarter. This

represents the highest rate of growth in more than four years and was mainly due to the strong rise in

industry, services and forestry. Industry increased by 9.8% y-o-y in 3Q17, up from 6.6% in 2Q17. Services

registered growth of 7.9% y-o-y in 3Q17, up from 7.1% in the previous quarter, and growth in forestry

accelerated from 3.8% in 2Q17 to 6.0% in 3Q17 y-o-y. Inflation remained weak in October at 0.4% y-o-y,

from 0.6% a month earlier. The currency remained stable in the past several months versus the dollar and

the central bank’s discount rate was also unchanged at 4.25% since July 2017.


The contraction in the PMI for the private sector of

South Africa

continued for the third consecutive month in

October, according to the Standard Bank South Africa PMI. The index posted 49.6 in October, from 48.5 in

the previous month. New orders, output and new export orders fell in October, reflecting weak domestic

economic activity and downbeat consumer confidence. Lower investor confidence also took its toll on the

economy as volumes of new exports declined for the first time in three months. The index readings suggest a

slowdown in economic growth in 3Q17. The economy grew by the fastest pace since 3Q15 in 2Q17. Growth

stood at 0.8% y-o-y, up from 0.2% in the previous quarter.



, the pound was stable in October following its slight appreciation a month earlier. The pound lost

nearly 95% of its value to the dollar during November 2016 through April 2017. Inflation continued posting a

reading above 30% for the eighth consecutive month in September and is expected to rise further in coming

months due to the recent reduction in subsidies to some fuel/energy items and public services. The

consumer price index rose by 32.9% y-o-y in September. The recession in the country’s non-oil private

sector continued in October, though at a notably slower pace. The Emirates NBD Egypt PMI rose to 48.4 in

October, up from 47.4 a month earlier. The pace of deceleration in new orders, employment and output

eased last month and business confidence reached its highest in 26 months, reflecting healthy optimism on

economic growth prospects in 2018.

Latin America

The economy of


expanded by 0.9% y-o-y in 2Q17, up from 0.1% in 2Q17. While growth in government

consumption slowed from 4.9% y-o-y in 2Q17 to 2.7% in 3Q17, private consumption accelerated to 2.6%

y-o-y in 3Q17 over 1.8% in 2Q17. GFCF continued its declining streak for the fourth consecutive quarter in

3Q17, by 4.1%. Exports of goods and services saw a slower decline in 3Q17 of 3.5% y-o-y versus a 4.2%

contraction in the previous quarter. Imports, on the other hand, increased to 7.0% y-o-y in 3Q17, compared

to growth of 4.7% in 2Q17. Consumer price inflation remained under 2% for the fourth consecutive month in

September, registering 1.4% y-o-y, from 1.8% in August. This is well below the inflation target of 3.0%.

Industrial sales increased in July and August 2017 after largely being in contraction since June 2016.