The countries of the Gulf Cooperation Council recorded a worsening financial deficit during the first six months of this year, amounting to 180 billion dollars, as a result of the decline in oil revenues and the repercussions of the new Coronavirus pandemic that paralyzed various economic activities.
According to a report issued by the global credit rating agency, Standard & Poor's, the cumulative deficit is expected to rise to about $ 500 billion by 2023. According to the agency, the deficit varied from one country to another in the first half and ranged between 15% and 25% of GDP, with the exception of Qatar, which maintained a deficit of about 8%.
The agency reveals that the deficit of the Gulf States was covered during the first six months of this year by borrowing $ 100 billion, of which about $ 60.3 billion in bonds, up $ 10 billion from last year 2019, while the remaining part ($ 80 billion) was covered by withdrawals from general precautions.
The International Monetary Fund, in its latest report on the outlook for the global economy, had predicted that the economy in the Gulf region would contract by 7.6% in 2020.
Source (Al-Araby Al-Jadeed Newspaper, Edited)
