GDP of GCC economies to grow 5.2% in 2010: IMF

Last Updated: Monday, October 12, 2009 - 13:27

Dubai: Gulf Cooperation Council (GCC) member countries will see their gross domestic product grow at 5.2 percent in 2010 on the back of rising oil revenues, the International Monetary Fund has said.

According to the IMF, the GCC member countries such as
Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain and Oman
registered real GDP growth of 6.4 perscent in 2008.

"For the recovery to be sustainable, policy
stimulus-based demand has to be replaced with private demand,
in households," said IMF Middle East and Central Asia Director
Masood Ahmed.

A key recovery risk will be the pace of unwinding public
stimulus programmes as well as public debt management, Ahmed
said, adding that the price of public debt, as governments run
fiscal deficits, and the role of central banks are key issues
going forward.

GCC countries will post fiscal surpluses of 5.3 percent
of GDP in 2009, down from 27.4 percent last year, the IMF
said.

Speaking to mediapersons Ahmed said the Gulf countries
should continue public spending to stimulate their economies,
despite a slump in oil income and unwind their stimulus
programmes slowly.

"Our message will be, going forward, continue with your
programme of public spending and don`t cut back in 2009," he
said."

The UAE has made available USD 32.67 billion (120 billion
dirhams) for local banks since the onset of the crisis and is
contemplating another tranche of cash injection.

Bureau Report



First Published: Monday, October 12, 2009 - 13:27

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