The “MENA Advisors” Foundation expected the non-oil output of the Gulf countries to decrease by 23 percent during the next six months, with the average oil price reaching about $30 during 2020/2021, indicating that this means that the countries of the region will achieve a fiscal deficit of about $250 billion, equivalent to 20 to 21 percent of GDP in 2020 and 2021.
While the report showed that Corona's effects on the Gulf economy will be severe, it expected Kuwait to achieve the lowest level of deflation at the level of non-oil GDP in the region, as it implements a fiscal stimulus that represents 1.5 percent of GDP, and it also has an economy dependent on consumption Less than anywhere else in the Gulf states.
According to the report, if the OPEC+ agreement continues to reduce production, with average oil prices increasing, and the price shock recedes, according to an optimistic scenario, the Gulf countries are expected to provide more incentives, and non-oil GDP growth will be stronger, and it will contract to 6 percent instead of 16 percent.
Source (Al-Rai Newspaper-Kuwait, Edited)
