IMF Revises World Economic Outlook Forecast

The International Monetary Fund (IMF) has revised down its forecast for the global economy amid mounting COVID-19 fallout.

Jessica David

July 1, 2020

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Hit by the COVID-19 pandemic, countries from the Gulf Co-operation Council, popularly known as GCC, will see their economies shrink by 7.6 per cent this year. The International Monetary Fund (IMF) has revised downwards its April forecast of nearly 3 per cent contraction. The six GCC nations are facing steep economic declines as there is a slowdown in business activities due to the Coronavirus pandemic. The slowdown is now amplified by a price drop in hydrocarbons. IMF says that, overall, the non-oil and oil revenue of GCC countries will be hit while oil is the main source of revenue for these nations.

IMF, last week, said Saudi Arabia’s economy, which is the largest in the Arab world, faces 6.9 per cent contraction this year, sharper than 2.3 per cent of what IMF had forecasted in April. Overall, these GCC economies will contract by 7.6 per cent this year and the contraction will be across all sectors, i.e., oil and non-oil. Bahrain, one of the smallest gulf producers, expects its economy to shrink in line with the IMF forecast, which is predicted to contract by 3.6 per cent this year.

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