gulfnews : Gulf 'is vulnerable to new global downturn'

The economies of the six Gulf states are vulnerable to a further downturn in the global economy, though their copious fin-ancial reserves should help them mitigate the impact of a deeper economic crisis, the International Monetary Fund said yesterday.

The six nations of the Gulf Cooperation Council (GCC) would be particularly exposed to a deepening of the banking and sovereign debt problems in the advanced economies or to a slowdown in emerging markets, according to Masoud Ahmad, the IMF's director for the Middle East and Central Asia.

The subsequent decline in trade and tightening of global liquidity could have the same impact on the GCC countries as seen in 2008-2009, when the global economic crisis led to a sharp contraction in the region.

* username: rupertbu