Policy Papers

Gulf Cooperation Council: Pursuing Visions Amid Geopolitical Turbulence: Economic Prospects and Policy Challenges for the GCC Countries

December 19, 2024

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Format: Chicago

International Monetary Fund. Middle East and Central Asia Dept. "Gulf Cooperation Council: Pursuing Visions Amid Geopolitical Turbulence: Economic Prospects and Policy Challenges for the GCC Countries", Policy Papers 2024, 066 (2024), accessed December 19, 2024, https://doi.org/10.5089/9798400295744.007

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Summary

The Gulf Cooperation Council countries have successfully weathered recent turbulence in the Middle East, and their economic prospects remain favorable. Nonhydrocarbon activity has been strong amid reform implementation, although overall growth has decelerated due to cuts in oil production. The growth outlook is positive, as the envisaged easing of oil production cuts and natural gas expansion spur the recovery in the hydrocarbon sector, while the nonhydrocarbon economy continues to expand. External buffers remain comfortable despite current account balances having narrowed. Risks around the outlook are broadly balanced in the near term. More challenging medium-term risks, especially in the context of geoeconomic fragmentation and climate change, call for action on policy priorities to continue to strengthen the private sector and to diversify the economy.

Subject: Balance of payments, Exports, Financial integration, Financial markets, Financial sector policy, Financial sector policy and analysis, Fiscal policy, Fiscal rules, Fiscal stance, Foreign direct investment, International trade, Labor, Labor markets, Oil production, Production

Keywords: Economic diversification, Exports, Financial integration, Financial sector policy, Financial stability, Fiscal rules, Fiscal stance, Fiscal sustainability, Foreign direct investment, GCC, Global, Labor markets, Oil production, Productivity improvements, Regional integration, Total factor productivity

Publication Details

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