Ongoing GCC fiscal adjustment could be less costly: IMF

Ongoing GCC fiscal adjustment could be less costly: IMF:

"Significant consolidation and lower less productive current spending make the ongoing fiscal adjustment in the Gulf Co-operation Council (GCC) less costly than previously thought, according to an International Monetary Fund (IMF) study.
"The ongoing fiscal adjustment in the GCC could be less costly than suggested by prior estimates of fiscal multipliers for the region," said an IMF working paper.
It highlighted that empirical assessment suggests that as the Gulf countries have embarked on significant fiscal consolidation measures, reducing (less productive) current spending will help limit the adverse impact of such measures on economic activity."



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