yesterday, Tuesday, the International Monetary Fund revised its previous expectations for all Gulf Arab states to reduce, with the exception of Saudi Arabia, which is expected to witness a contraction of 5.4% this year against previous estimates A shrinkage of 6.8%.
The Fund lowered its forecast of real GDP in 2020 for most Gulf countries, as it warned that the economic outlook is getting worse for many emerging markets amid the Coronavirus crisis, according to His latest World Economic Outlook report.
The IMF expected a global contraction of 4.4% in 2020, an improvement from the 5.2% contraction expected in June, but said it is still the worst economic crisis since The Great Depression of the 1930s.
The fund pointed to the suffering of the oil-rich Gulf countries from a double shock as a result of the Corona pandemic, which weakens demand in the non-oil economy, and low oil prices, which hurt revenues this year .
The fund said that the UAE - the second largest economy in the Gulf - may see a contraction of 6.6% this year, against previous expectations of a 3.5% decline.
The biggest change came in the forecasts for the Sultanate of Oman, which is expected to witness a contraction of 10%, and Kuwait with a slowdown of 8.1%.
The International Monetary Fund had forecast last April a contraction of 2.8% in Oman and 1.1% in Kuwait.
The fund said that Qatar's economy is expected to shrink 4.5%, and Bahrain's economy to shrink 4.9%, against expectations of a decline in April of 4.3% and 3.6%, respectively .
The IMF 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% in 2021.
The IMF has suggested that the economic recovery in the UAE will slow by 1.3% next year, while Oman is expected to remain hostage to the slowdown, with a 0.5% contraction, according to the Fund's latest economic outlook report. Global.
