IMF has warned that the economies of Gulf countries will start to have financial deficits before five years due to low oil prices.
The report named Middle East and Central Asia Regional Economic View issued by IMF stated that the growth of Gulf countries, of which the economies are dependent on sales and export of oil will slow down due to low oil prices.
Report said: “If the Gulf countries except Kuwait, Qatar and United Arab Emirates do not fix their financial status, they will have financial deficits in less than five years”. It was referred in the report that the growth rate of Gulf countries was 3,4 per cent last year and that this rate is expected to be 3,4 per cent next year; assumed that it will drop to 2,8 per cent in the following year”.
Report indicated that the financial deficits of the Gulf countries will reach to 13 per cent of their gross domestic product this year; and that the biggest crude oil exporter Saudi Arabia will have a financial deficit which is 20 per cent of gross domestic product.
IMPF has reminded that many Gulf countries have taken measures to reduce their financial gaps and underlined the necessity of strategies such as increasing other taxes than oil, new pricing of energy and public investments and administrative reforms.