With the exception of Saudi Arabia, the IMF is adjusting its economic forecasts for the Gulf states to downgrade


The International Monetary Fund today revised its forecast of real GDP cuts in 2020 for all Gulf countries except Saudi Arabia, warning that the economic outlook is getting worse for many emerging markets amid the Coronavirus crisis.
In its latest global economic outlook report, the IMF expected a global contraction of 4.4 percent in 2020, an improvement from the 5.2 percent contraction expected in June, but said it was still the worst economic crisis since the Great Depression of the 1930s.
According to Reuters, the International Monetary Fund revised its previous forecast for Saudi Arabia, expecting it to witness a contraction of 5.4 per cent this year, compared to previous estimates of a 6.8 per cent contraction.
The fund said the UAE – the second largest economy in the Gulf – could see a contraction of 6.6 percent this year, against previous expectations of a 3.5 percent decline.
The biggest revision came in expectations for Oman, which is expected to see a contraction of 10 percent, and Kuwait, to slow down 8.1 percent. In April, the fund had expected a contraction of 2.8 percent in Oman and 1.1 percent in Kuwait.
The fund said that Qatar’s economy is expected to shrink 4.5 percent and Bahrain’s economy by 4.9 percent, compared to expectations of a decline in April of 4.3 percent and 3.6 percent, respectively.
The International Monetary Fund estimates that all Gulf economies, with the exception of Oman, are expected to return to growth next year, led by Saudi Arabia, whose GDP will grow 3.1 percent in 2021.
The economic recovery in the UAE is expected to be slower, growing at 1.3 percent, next year, while Oman is expected to remain hostage to a slowdown with a 0.5 percent contraction.


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