Last year the world economy stared into the abyss. With the right policy response, the worst has been avoided. Gulf Co-operation Council countries have been affected by the global slowdown, but the 2010 outlook appears more promising.
Despite its challenges, the previous year has highlighted some important facts and lessons. First, emerging markets have outperformed. A shift of power from the west to the east is under way. Second, counter-cyclical policies work. Third, no boom is eternal, and recessions also end. All these will have significant implications for the Gulf.
Asia and the GCC outperformed in 2009. Both are likely to continue to do so this year, with growth reaching 7 per cent in Asia and 3.5 per cent in the GCC.
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