Cloudy Q3 Outlook - Zawya

As the global economy lurches from one crisis to the next, we look at the prospects for the regional economies in troubling global conditions which could slash domestic growth.

Another quarter, another headache. Gulf governments have suffered a tumultuous first two quarters of the year and were hoping for some semblance of sanity in the third quarter. At the very least, regional governments were hoping that tragic developments within the Middle East had remained isolated - Syria, Yemen and Libya - leaving other countries in relative safety and peace.

But the new global crisis with the onset of Standard & Poor's downgrade of the U.S.'s sovereign ratings and the escalating EU debt crisis could dampen growth of most regional countries.

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