GCC gears up for global downturn | alifarabia

The world’s hurtling uncontrollably towards a recession. Investors are fleeing the markets and even ‘safe haven’ gold is not safe anymore, as European and American policymakers fail in their duties and continue to put band aid on wounds that require full-scale surgery.

The Gulf is not immune to the U.S. downgrade by ratings agency Standard & Poor’s from triple-A to AA+, and the issue if European sovereign debt crisis.

“Successful articulation of polices will need to keep in mind several key and collateral risks that have erupted as a result of series of crisis including the latest downgrade crisis,” writes M.R. Raghu, head of research at Markaz, or the Kuwait Financial Centre. “In our opinion, the biggest challenge in a crisis ridden world will be to efficiently and effectively manage the surplus generated in good times.”

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