IMF slashes growth outlook in GCC states over oil production cuts | ZAWYA MENA Edition:
Growth in Gulf Cooperation Council (GCC) countries is projected to decelerate to 0.7 percent in 2019 from 2 percent in 2018, due to oil production cuts in line with OPEC+ agreements, according to the International Monetary Fund (IMF).
In April, IMF had forecast 2.1 per cent growth in 2019.
However, growth in 2020 is expected to rebound to 2.5 percent, driven by a recovery in real oil GDP growth of 1.9 percent (compared to –1.4 percent in 2019 and 2.5 percent in 2018), the IMF said in its October 2019 Regional Economic Outlook (REO) report for the Middle East, North Africa, Afghanistan and Pakistan (MENAP), launched in Dubai on Monday.
The report said the recovery in 2020 reflects a mix of rising oil production in Kuwait and Saudi Arabia, the Jizan refinery becoming fully operational (Saudi Arabia), and a pickup in gas output in Oman and Qatar. However, there is uncertainty on whether the OPEC+ agreement will expire by March 2020.
Growth in Gulf Cooperation Council (GCC) countries is projected to decelerate to 0.7 percent in 2019 from 2 percent in 2018, due to oil production cuts in line with OPEC+ agreements, according to the International Monetary Fund (IMF).
In April, IMF had forecast 2.1 per cent growth in 2019.
However, growth in 2020 is expected to rebound to 2.5 percent, driven by a recovery in real oil GDP growth of 1.9 percent (compared to –1.4 percent in 2019 and 2.5 percent in 2018), the IMF said in its October 2019 Regional Economic Outlook (REO) report for the Middle East, North Africa, Afghanistan and Pakistan (MENAP), launched in Dubai on Monday.
The report said the recovery in 2020 reflects a mix of rising oil production in Kuwait and Saudi Arabia, the Jizan refinery becoming fully operational (Saudi Arabia), and a pickup in gas output in Oman and Qatar. However, there is uncertainty on whether the OPEC+ agreement will expire by March 2020.
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