HSBC Cuts GDP Outlook for 13 Oil Exporters From Russia to U.A.E - Bloomberg

HSBC Cuts GDP Outlook for 13 Oil Exporters From Russia to U.A.E - Bloomberg:



"The plunge in oil prices prompted HSBC Holdings Plc to cut this year’s economic outlook for 13 crude exporters across central, eastern Europe and the Middle East as public spending drops.



Economic growth in the grouping will slow to 1.8 percent, compared with an estimate of 2.6 percent in October, the London-based bank said in a report yesterday. Russia’s gross domestic product may shrink 3.5 percent, compared with an October forecast of a one percent-contraction, the bank said.



“With the lower oil price, we are looking for an across the board squeeze,” Simon Williams, chief CEEMEA economist, said in a phone interview from London. “Oil-funded public spending will slow, public and private investment will moderate, and consumption will ease as confidence falls. Governments as borrowers rather than creditors will also put pressure on liquidity.”"



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