Fiscal consolidation to slow down across GCC: Fitch Solutions

Fiscal consolidation to slow down across GCC: Fitch Solutions:

Fiscal consolidation looks set to slow across the Gulf Cooperation Council (GCC) in 2019 as governments focus increasingly on growth-supportive policies, despite oil prices levelling off, Fitch Solutions has said in a report.

In particular, the report noted "there appears to be a g rowing emphasis on the use of fiscal stimulus to encourage non-hydrocarbon private investment and business activity — an integral part of the various member states’ economic diversification programmes and crucial for job creation." 

"GCC governments are continuing to invest heavily in infrastructure," Fitch Solutions said. Most notably, Qatar and Dubai are carrying out large-scale investment development programmes as they prepare to host the FIFA World Cup 2022 and the 2020 World Expo, respectively.