Economic Prospects and Policy Challenges for the GCC Countries

December 10, 2020

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Format: Chicago

Economic Prospects and Policy Challenges for the GCC Countries, (USA: International Monetary Fund, 2020) accessed November 15, 2024

Summary

The COVID-19 pandemic is having far-reaching consequences for the global economy. Measures to contain the spread of the virus have led to sharp declines in economic activity across the globe, particularly in 2020Q2. The hardest hit sectors have been those requiring intensive human contact, such as tourism, transportation, services, and construction, while, in general, IT-intensive activities have fared better. The economic contraction is most significant in advanced economies. The GCC countries face a double impact from the coronavirus and lower oil prices. GCC authorities have implemented a range of appropriate measures to mitigate the economic damage, including fiscal packages, relaxation of monetary and macroprudential rules, and the injection of liquidity into the banking system, and there are recent signs of improvement. Low oil prices have caused a sharp deterioration of external and fiscal balances, and fiscal strains are evident in countries with higher debt levels.

Subject: 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

Publication Details

Pages:

37
Volume:

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DOI:

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Issue:

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Series:

Policy Paper No. 2020/065
Stock No:

PPEA2020065
ISBN:

9781513563572
ISSN:

2663-3493

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