GCC needs further deficit cuts to stabilise public finance | GulfNews.com

GCC needs further deficit cuts to stabilise public finance | GulfNews.com:

"The Gulf Cooperation Council (GCC) governments have been working hard to address the rising fiscal gap following the sustained decline in oil prices, but the problems persist and further reduction in deficits and revenue diversification are required to sustain economic growth and job creation, according to economists and multilateral agencies. GCC fiscal deficits are forecast to narrow in 2017 to an aggregate of 6.5 per cent of GDP in 2017 on higher oil revenues. The narrower deficits and ongoing foreign borrowings are expected to result in banking sector liquidity easing in 2017. But as a result of the fiscal tightening, support to growth is expected to moderate, potentially impacting GDP and employment growth. Speaking at the recent Arab Fiscal Forum, Christine Lagarde, Managing Director of the International Monetary Fund (IMF) called on regional governments to deepen and broaden government revenues while rationalising spending."



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