GCC needs fiscal reforms to deal with oil volatility | GulfNews.com

GCC needs fiscal reforms to deal with oil volatility | GulfNews.com:



"Oil revenues are critical to Gulf Cooperation Council (GCC) to sustain public expenditures and economic growth; however the impact of recent sharp decline in oil prices can be managed with diligent use of accumulated surpluses and innovative fiscal management, economists and policy experts said.



Speaking at a policy symposium on developments in the global oil markets and their effects on the region’s economies, policy experts and economists said the GCC countries are not new to volatility in the oil market and this time most of these economies are better equipped to deal with the impact of oil market glut and sharp decline in prices.



“Most of the GCC countries have accumulated large surpluses during the boom years and have invested in critical infrastructure. While these countries can use the surpluses to fill the revenue gap from oil price decline, most of these countries have very low debt to GDP ratios, giving them ample fiscal head room to leverage,” said V Shankar, Group Executive Director and CEO of Europe Middle East, Africa and America of Standard Chartered."



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