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The International Monetary Fund (IMF) Director for the Middle East and Central Asia Jihad Azour (C) speaks at a press briefing for the release of the IMF’s Regional Economic Outlook: Middle East & Central Asia, in Dubai, the United Arab Emirates, on Oct. 31, 2024. The Gulf Cooperation Council (GCC) economies have demonstrated resilience amidst regional conflicts, which have had only a limited impact on their economic stability, the International Monetary Fund (IMF) said on Thursday. (Xinhua/Wen Xinnian)
DUBAI, Oct. 31 (Xinhua) — The Gulf Cooperation Council (GCC) economies have demonstrated resilience amidst regional conflicts, which have had only a limited impact on their economic stability, the International Monetary Fund (IMF) said on Thursday.
During a press briefing for the release of the IMF’s Regional Economic Outlook: Middle East & Central Asia, Jihad Azour, the IMF’s director for the Middle East and Central Asia, noted that although regional conflicts present risks, the GCC’s solid economic frameworks have effectively contained their effects.
With the recent escalation of the Israel-Hamas conflict and its broader regional implications, the IMF observed that the resulting rise in oil prices has indirectly benefited GCC oil-producing nations.
Additionally, economic diversification and substantial sovereign wealth funds have insulated these economies from direct conflict repercussions, according to Azour.
On the broader effects of the conflict, Azour emphasized that Middle Eastern economies could face extended recovery periods, with per capita GDP declining by 10 percent even ten years after the conflict.
The IMF’s report also highlighted GCC economies’ dedication to economic reforms, According to the report, non-oil sector growth within the GCC is forecast to remain strong, reaching 3.7 percent in 2024 and 4 percent in 2025.
GCC inflation rates are projected to stay stable at around 2 percent through 2025. Still, with a forecasted decline in oil production and prices, the IMF anticipates a drop in the GCC’s current account surplus from 6.1 percent of GDP in 2024 to approximately 2.5 percent in the medium term, a reduction of over 63 billion U.S. dollars. ■
The International Monetary Fund (IMF) Director for the Middle East and Central Asia Jihad Azour (C, Rear) speaks at a press briefing for the release of the IMF’s Regional Economic Outlook: Middle East & Central Asia, in Dubai, the United Arab Emirates, on Oct. 31, 2024. The Gulf Cooperation Council (GCC) economies have demonstrated resilience amidst regional conflicts, which have had only a limited impact on their economic stability, the International Monetary Fund (IMF) said on Thursday. (Xinhua/Wen Xinnian)
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