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FINANCIAL NEWS
IMF estimates 3.2 percent fall for GCC’s economy in 2015
22 Oct 2015
(MENAFN) According on IMF, economic growth in the GCC, which is already witnessing a plunge on the back of persistent low oil prices, is forecasted to slow further in the short term as nations start fiscal consolidation.
GCC progress is predicted to decline to 3.25 percent this year and further to 2.75 percent next year from 3.25 per cent in 2014, moreover; GCC’s non-oil growth is estimated at just below 4 percent for both current year and the next.
The International Monetary Fund adds that the speed of fiscal consolidation poses a risk to GCC growth projections, if the chosen mix of adjustment policies leads to a larger-than-anticipated deterioration in domestic demand.
Furthermore, weaker oil export income by USD360 billion for regional oil exporters as a whole in the current year will severely reduce the region’s external surplus, turning it into a deficit, and these signs among others don’t present a good case.
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