Growth in Gulf states set to halve in 2009

Growth in Arab Gulf states will almost halve in 2009 on lower than expected oil prices amid the gloomiest global economic outlook in more than half a century, according to the IMF.

Masood Ahmed, the IMF’s regional director, said Gulf Co-operation Council states – which include Saudi Arabia and the United Arab Emirates – would see gross domestic product fall from 6.8 per cent in 2008 to 3.5 per cent this year.

In its October economic report, before the Opec oil producers’ cartel slashed production as the recession deepened, the IMF predicted a relatively moderate easing of growth in the GCC from 7.1 per cent last year to 6.6 per cent this year.