Government spending across the GCC will jump again this year, spurred by higher oil prices and sluggish private credit, says the Institute of International Finance (IIF).
But the spending drive will be cushioned by steadily growing foreign reserves. The GCC's net foreign assets will reach US$2.1 trillion (Dh7.71tn) by the end of next year, up from $1.6tn last year, the IIF said.
"Expansionary fiscal and monetary policies are expected to remain in place in light of the continued rise in hydrocarbon revenues, the peg to the dollar, and the modest rebound in private credit," wrote George Abed, the senior counsellor and director of the IIF's Africa and Middle East department, and Garbis Iradian, the deputy director of the department, in a report released yesterday.
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