Tuesday 5 May 2015

Gulf oil states need swift adjustment to lower prices, IMF warns | The National

Gulf oil states need swift adjustment to lower prices, IMF warns | The National:



"The IMF warned Middle Eastern oil exporters that their economies will pay a price if they don’t take rapid steps to scale back public spending amid the global oil-price slump.



Countries facing a loss of oil revenue are expected to use financial buffers to weather declining oil prices, while gradually reducing their fiscal spending, the IMF said in a report on Tuesday.



Governments should take steps such as capping public wages, reducing energy subsidies and increasing targeted social subsidies, it said. “Delaying such reforms will most likely require a more abrupt and costly adjustment in the future.”"



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