Gulf states should stick with stimulus

The role of Gulf states in the global economy should be re-evaluated because their importance is underestimated, the managing director of the International Monetary Fund said yesterday.

As the global economy recovers, the GCC’s role is “very important” in helping to manage oil prices, which were a factor in determining the risk of a double-dip recession, said Dominique Strauss-Kahn at a meeting of GCC policy makers and the IMF.

His comments follow a recent agreement by the Group of 20 advanced and emerging economies to give underrepresented countries greater power at the IMF.