IMF Warns Gulf Countries to Rationalize Spending

Oil exporters in the crude-rich Gulf need to rationalize spending amid a deteriorating global economic outlook, the International Monetary Fund has warned.

“In the GCC (Gulf Co-operation Council), years of fast growth since the global financial crisis, rising asset prices, rapid credit growth in some countries, and accommodative global monetary conditions call for a return to fiscal consolidation,” the IMF said in its biannual economic outlook for the Middle East and Central Asia.

But the fund also cautioned against immediate policy responses, especially given that GCC exporters were were well-placed to handle the current volatility in global energy markets.

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