Economic Prospects and Policy Challenges for the GCC Countries
Policy Papers, December 10, 2020
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- Economic Prospects and Policy Challenges for the GCC Countries
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Bibliographic details
- Published: December 10, 2020
- Series: Policy Papers
- DOI: https://doi.org/10.5089/9781513563572.007
Overview and Context
- Publication date: December 10, 2020
- Core theme: Economic effects of the COVID-19 pandemic and low oil prices on GCC countries
- Key sectors most affected: tourism, transportation, services, construction
- Sectors faring better: IT-intensive activities
- Peak contraction timing: 2020Q2
- Regional double shock: coronavirus pandemic + lower oil prices
Main Findings
- The economic contraction is most significant in advanced economies.
- GCC countries face a double impact from the coronavirus and lower oil prices.
- Low oil prices have caused a sharp deterioration of external and fiscal balances.
- Fiscal strains are evident in countries with higher debt levels.
- Recent policy actions have produced signs of improvement.
Policy Responses Implemented by GCC Authorities
- Fiscal packages
- Relaxation of monetary and macroprudential rules
- Injection of liquidity into the banking system
Subject Tags and Keywords (as provided)
- Subjects: Commodities, COVID-19, Fiscal consolidation, Fiscal policy, Health, Oil, Oil prices, Prices
- Keywords: central bank, COVID-19, Fiscal consolidation, GCC authorities, GCC country, GCC economy, GCC inflation, Global, IMF staff calculation, labor market, Oil, Oil prices, PP
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- Policy Paper