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Egypt’s inflation surges in September.

Financial Markets

Global equities rallied on Friday, supported by this week’s strong rebound in commodities. Stocks prices
were also helped by dovish minutes of the most recent Federal Reserve meeting that suggested the U.S.
central bank is in no rush to raise interest rates. The benchmark MSCI world stock index was up 0.8
percent, heading for the eight-consecutive rise and a roughly 4 percent gain for the week.

Russia posted a net capital inflow of $5.3 billion in Q3, the country’s central bank data showed, a
turnaround from significant outflows in previous quarters that suggests financial conditions are stabilizing.
 Despite the Q3 data, Russia saw a capital outflow of $45 billion for the first nine months of the year,
versus an outflows of $76.8 billion in the like period of 2014.



High Income Economies

Import prices fell in the U.S. by 0.1 percent in September (m/m), pointing to a moderation of external
deflationary pressures. Recovering oil prices partially offset continued declines in other imports. Export
prices fell more steeply, dropping by 0.7 percent in September (m/m), led by falls in the prices received
for agricultural products.

The Eurozone group of finance ministers has agreed on proposals seeking to cap Greek debt servicing
costs, with a ceiling of 15 percent of Greek GDP, and other details under discussion. Following two
bailouts since 2010, Eurozone governments hold two-thirds of Greek debt, with extended maturities of
over 30 years at interest rates of about 1 percent. The group notes the importance of continued IMF
engagement.

Industrial production in France picked up in August, with output rebounding by 1.6 percent (m/m) from the
1.1 percent fall registered in July. Manufacturing rose even faster, growing by 2.2 percent (m/m). The
most recent Purchasing Manager’s Index for September (Markit) also points to expansion.



Developing Economies

Middle East and North Africa

Egyptian urban consumer prices increased by 9.2 percent (y/y) in September, accelerating from a 2-year
low of 7.9 percent in August, due to a seasonal hike in vegetable prices. Annual core inflation rate was
almost unchanged at 5.55 percent compared to 5.61 percent in August.


South Asia


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India is poised for better growth prospects even as most of the major economies including the U.S. and
U.K. see signs of moderation in growth, according to Paris-based think tank OECD (Organization for
Economic Cooperation and Development).


Sub-Saharan Africa

Growth in Africa's mobile phone users is set to slow sharply in the next five years, a study by global
industry body GSMA showed on Thursday, heralding an end to the boom in an industry that has spurred
the continent's growth. The report projects subscriber growth to slow to 6 percent between 2015-2020
compared with 13 percent growth in the first half of the decade, citing lack of commercial logic in setting
up network coverage in some rural areas, where more than half of the population lives.

Rwanda's Supreme Court ruled on Thursday that President Paul Kagame could run for a third seven-year
term, rejecting an attempt by the main opposition party to block changes to the country's constitution.

October 9, 2015



The Global Daily is an informal briefing on global economic and financial developments compiled by the
World Bank’s Development Economics Prospects Group. Recent issues, together with analysis of a
variety of macroeconomic topics, covered by the Group, may be found at:
 http://www.worldbank.org/prospects.

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