GCC’s 2013 economic growth outlook bright: S&P

16 Feb 2013

(MENAFN) A new report by Standard & Poor’s (S&P) expected economies in the Gulf Cooperation Counsel to continue growing unaffected by the ongoing economic and political turbulence in the broader MENA region, and globally, Arabian Business reported.

The rating agency, which rates Abu Dhabi, Bahrain, Kuwait, Oman, Qatar, Ras Al Khaimah, and Saudi Arabia, said in a new report that the outlook was stable for all of them.

On the other hand, S&P warned that the GC’s structural challenges “continue to constrain sovereign ratings”, despite its relative wealth, and its forecast for 4.6 percent GDP growth this year.

The report also covered the possibility that oil reserves could peter out in some GCC countries much earlier than in others.

Last year, S&P said Gulf banks were likely to continue their steady recovery from the 2008 crisis and remain isolated from eurozone turmoil for the rest of 2012 and 2013.

The rating agency said that despite slower balance sheet growth, most GCC banks have maintained healthy earnings generation before provisioning.

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