GCC to benefit from US, Europe recovery | GulfNews.com

GCC to benefit from US, Europe recovery | GulfNews.com:



"Gulf oil exporting countries will benefit from the economic recovery in the US and Europe while a potential decline in oil demand due to a slowdown in emerging markets will be largely offset by the positive developments in the Western economies and economic diversification in Gulf countries, according to economists and analysts.



“The developed markets are entering a phase of tightening of monetary policy cycle starting with the US tapering. We need to look at emerging markets in this new context. We have seen some dramatic changes in capital flows and currency depreciation in some of these markets since last summer. But this does not mean all emerging markets are going to experience a massive slump,” Jean-Michel Six, the Paris-based chief economist for Europe, the Middle East and Africa at Standard & Poors told Gulf News in an interview.



While many emerging markets will experience turbulence of varying degrees in relation to their fundamental strengths and their dependence on foreign capital flows, Six said it is unrealistic to expect a slowdown in China’s growth (to about 7 per cent) will result in a massive decline in commodities demand particularly oil demand."



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