FINANCIAL NEWS

GCC’s deficit predict to increase 10.5 percent of GDP in 2016

04 Apr 2016

(MENAFN) The fiscal deficit in the Gulf Cooperation Council (GCC) is predicted to increase to USD 143bn or 10.5 percent of the gross domestic product (GDP).

Moreover, the GCC fiscal balance has moved from a surplus of USD 49bn in 2014 to a deficit of USD 127bn in 2015, equivalent to 9.1 percent of GDP.

Accordingly, it is expected that the financial debt will spread to USD 143bn or 10.5 percent this year under the assumption of an average oil price of USD 40 per barrel.

However, lower oil incomes will be more than offset the projected 11 percent fall in real spending, while public foreign assets are large and sufficient to finance the deficit.

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