GCC oil revenues are projected to be lower by $400 billion in 2016 | GulfNews.com

GCC oil revenues are projected to be lower by $400 billion in 2016 | GulfNews.com:

"Despite recent improvement in oil prices and the adoption of consolidation measures, projected fiscal deficits of GCC countries remain large in both the short and medium term, according to the International Monetary Fund’s latest regional economic outlook.
Taking into account announced fiscal policy measures, all countries are expected to record fiscal deficits this year, and only Iraq, Kuwait, and the UAE are projected to post surpluses by 2021. This year’s hydrocarbon budget revenues are projected to be lower by $400 billion compared with 2014.
Cumulative fiscal deficits during 2016–21 are forecast to be about $765 billion, down from $1.1 trillion in the April 2016. The significant deficit-reduction efforts which began last year are continuing, with the 2016 non-oil fiscal deficit expected to improve by more than 5 per cent of non-oil GDP. Fiscal consolidation is particularly fast in Oman and Saudi Arabia, where non-oil deficits are projected to fall by more than 10 percentage points of non-oil GDP. In 2017, the pace of consolidation is expected to ease to about 1.5 per cent of non-oil GDP."



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