GCC growth to continue despite oil decline and market volatility | GulfNews.com

GCC growth to continue despite oil decline and market volatility | GulfNews.com:



"The recent sharp fall in oil prices and significant volatility in capital markets are not likely to impact the economic growth prospects of Gulf Cooperation Council (GCC) countries according to the Institute of International Finance (IIF), a Washington based global association or trade group of financial institutions.



While large foreign exchange assets underpin the dollar peg regime in the GCC, the region has been subject to volatility in asset prices, with the MSCI GCC index still down more than 20 per cent from its peak despite paring back some losses.



“The GCC countries are much better positioned to cope with a slump in oil prices today than they were in the 1980s and 1990s. Ample public foreign assets and low debt in most of these countries will mitigate the adverse impact of low oil prices on economic activity and allow continued robust public spending, particularly on infrastructure,” said Garbis Iradian, Deputy Director of IIF."



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