The International Monetary Fund has lowered its forecast of real GDP in 2020 for most Gulf countries, warning that the economic outlook is getting worse for many emerging markets amid the coronavirus crisis.
In its new report on the global economic prospects, the IMF expected a global contraction of 4.4% in 2020, an improvement from the 5.2% contraction expected in June, indicating that the current crisis is still the worst economic crisis since the Great Depression in the 1930’s of last century.
The oil-rich Gulf states are experiencing the double shock of the Coronavirus crisis, which is dampening demand in the non-oil economy, and lower oil prices, affecting revenues this year.
The International Monetary Fund has revised down its previous forecasts for all Gulf countries with the exception of Saudi Arabia, which is expected to witness a contraction of 5.4% this year compared to previous estimates of a 6.8% contraction, while the UAE will witness a contraction of 6.6% this year. It is expected to witness a contraction of 10%, and Kuwait a slowdown of 8.1%. Qatar’s economy is expected to contract by 4.5% and Bahrain’s economy to shrink by 4.9%.
Source (Al-Arabiya.net, Edited)
