EFG Hermes revises upward Gulf macro economic forecasts

Gulf economies are expected to continue their expansion as a recovery in the price of oil boosts revenue, says EFG-Hermes.

“The strengthening in the oil price will be extremely positive for the hydrocarbon-dependent GCC countries, which will see high oil revenues,” the bank said in a research report released Sunday. “We have revised upward our GCC macro forecasts in line with the changes in our oil price forecasts.”

Saudi Arabia’s fiscal surplus will amount to about 0.6% of its gross domestic product this year compared with an earlier deficit forecast of 4.8%, EFG-Hermes said. Kuwait, Qatar and the United Arab Emirates are all expected to post fiscal surpluses with crude prices averaging US$50 a barrel this year.