GCC economies vulnerable to emerging markets slowdown | GulfNews.com

GCC economies vulnerable to emerging markets slowdown | GulfNews.com:



"The strong economic linkages that have been developed between Gulf Cooperation Council (GCC) countries and Asian emerging markets over the last decade makes the GCC vulnerable to economic slowdown in Asia, according to Standard & Poor’s economists.



During the last decade the trade relations between the GCC countries and Asia (excluding Japan), grew substantially at the expense of Europe, the US, and Japan. This is mainly because of the big surge in emerging Asian countries’ demand for oil.



“GCC exports of goods to the EU, the US, and Japan fell to less than 30 per cent in 2012 from 51 per cent in 1995. Meanwhile, Asia is now the GCC’s largest export destination, accounting for 57 per cent of total foreign sales,” said Sophie Tahiri, an economist at S&P."



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