The International Monetary Fund has revised down its forecast of real GDP for most Gulf countries in 2020.
According to Arabiya Net, the IMF, in its latest global economic outlook report, expected a global contraction of 4.4% in 2020, an improvement from a 5.2% contraction that was Expected in June, but said it was still the worst economic crisis since the Great Depression of the 1930s.
The oil-rich Gulf states are experiencing a double shock from the Coronavirus crisis, which dampens demand in the non-oil economy, and low oil prices, which hurt revenues this year. / p>
The International Monetary Fund has revised down its previous forecasts for all Gulf countries except for Saudi Arabia, which is expected to witness a contraction of 5.4% this year compared to previous estimates of a 6.8% contraction. p>
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%. In April, the fund had expected 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 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% in 2021 .
The economic recovery in the UAE is expected to be slower, growing by 1.3% next year, while Oman is expected to remain hostage to a slowdown with a 0.5% contraction.
