Washington-based IMF says Gulf economies to shrink by 7.6% this year

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Washington-based IMF says Gulf economies to shrink by 7.6% this year

On Tuesday, an official of the Washington-based International Monetary Fund (IMF), a sister organization to World Bank accountable for fostering growth and economic coordination among the emerging and underdeveloped economies, said in a statement that the six countries of Gulf Cooperation Council (GCC) such as the OPEC-kingpin Saudi Arabia, UAE, Oman, Qatar, Kuwait and Bahrain would likely to witness their economies truncating by 7.6 per cent, revising an April projection of 3 per cent shrinkage of the GCC economies this year.

In point of fact, latest revised forecast from the International Monetary Organization came forth as the six GCC nations had been facing off a mass-scale economic slump with varying degrees, while the pandemic-led slowdown in business activities coupled with a steep drop in prices of hydrocarbons amid a havoc-scale supply glut, had been slandering economic outlooks of the six GCC nations for the remaining period of the year.

Saudi Arabia to face a 6.8% contraction, says IMF

Meanwhile, adding that the Gulf’s largest economy, the Kingdom of Saudi Arabia would face off a shrinkage of 6.8 per cent this year, sharply higher than an April IMF projection of a contraction of 2.3 per cent in 2020, speaking in a virtual economic forum on Tuesday, the director of the IMF’s Middle East and Central Asia Department, Jihad Azour said, “We expect the GCC economies to contract by 7.6% this year, the contraction will be across all sectors, oil and non-oil.

” More importantly, IMF’s Azour had also added on his Tuesday’s statement that other oil-dependent nations in the region would likely to experience even larger slumps in economic activities.

Nonetheless, opposing the IMF forecast, the Central Bank Governor of Saudi Arabia, Ahmed-al Kholifey said shortly after the release of IMF forecast on Tuesday that the IMF outlook was “more pessimistic” than the resource-rich country’s own projection adding that the Kingdom was expecting its economy to comport itself far better than the IMF projections.