"The fiscal position of Gulf states is still extremely strong despite rapid rise in government spending, but with break-even oil prices rising, pace of spending will have to slow in 2014-15, according to a research by London-based Capital Economics.
“To be clear, a fiscal crisis is highly unlikely in the Gulf and governments are unlikely to be forced into policy tightening. Even if the region’s governments begin to run budget deficits, most have no debt so to speak of and have large savings in their sovereign wealth funds. Hence, they could fund budget deficits for a number of years,” said the think-tank in its research."
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