The external sector performance in November 2017 was supported by continued inflows to the financial account of the Balance of Payments (BOP) mainly with higher foreign inflows to the government securities market, and marginally improved earnings from tourism. Although a double-digit growth in exports has been recorded, partly driven by the low base recorded in November 2016, the trade deficit expanded considerably during the month with higher imports. Meanwhile, workers’ remittances continued to decline, owing to adverse economic and geopolitical conditions prevailing in the Middle Eastern region. Accordingly, the BOP recorded an overall surplus of around US dollars 2.0 billion by end November 2017. Gross official reserves also increased to US dollars 7.3 billion (equivalent to 4.2 months of imports) by end November 2017 from US dollars 6.0 billion recorded at end 2016.

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The Manufacturing Sector PMI recorded 59.1 in December which is a marginal increase of 0.3 index points compared to November 2017. This indicates that the Manufacturing activities expanded at a higher pace in December compared to November 2017. This was mainly driven by the increase in the Production sub-index. Further, Stock of Purchases and Employment sub-indices also expanded at a higher pace while New Orders sub-index expanded, albeit at a slower rate, during the month as compared to November 2017. Meanwhile, the Suppliers’ Delivery Time sub-index lengthened at a higher rate compared to previous month. Overall, all the sub-indices of PMI recorded values above the neutral 50.0 threshold signalling an overall expansion in December 2017. Moreover, The Expectation for activities indicates an improvement for the next three months.