Arab Spring boosts GCC gains

06 Jul 2011

(MENAFN) Arabia Monitor’s chief executive, Dr Florence Eid, said that the research firm’s Q3 MENA Outlook report showed that due to increasing oil prices that resulted from the Arab Spring, the Gulf Cooperation Council (GCC) would be able to carry on its fiscal growth, reported Emirates 24/7.

Eid added that for the GCC, on average, GDP delta year-on-year was enhanced, mainly in fiscal balances, which should allow more subsidies to encounter inflationary pressures.

He also said that for other MENA countries excluding the GCC, inflationary pressures, high unemployment and deteriorating fiscal balances would create rising debt burdens, with potential for prolonged periods of stagflation in Yemen, Tunisia and possibly Jordan in spite of subsidies and price controls.

It is worth noting that despite the tough market conditions and social unrest, the MENA region has successfully held its position as a growing emerging market, reflecting the region’s confirmed attractiveness as a business and financial market place.

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