Policy Papers

Gulf Cooperation Council: Pursuing Visions Amid Geopolitical Turbulence: Economic Prospects and Policy Challenges for the GCC Countries

December 19, 2024

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Format: Chicago

International Monetary Fund. Middle East and Central Asia Dept. "Gulf Cooperation Council: Pursuing Visions Amid Geopolitical Turbulence: Economic Prospects and Policy Challenges for the GCC Countries", Policy Papers 2024, 066 (2024), accessed January 12, 2025, https://doi.org/10.5089/9798400295744.007

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Summary

The Gulf Cooperation Council countries have successfully weathered recent turbulence in the Middle East, and their economic prospects remain favorable. Nonhydrocarbon activity has been strong amid reform implementation, although overall growth has decelerated due to cuts in oil production. The growth outlook is positive, as the envisaged easing of oil production cuts and natural gas expansion spur the recovery in the hydrocarbon sector, while the nonhydrocarbon economy continues to expand. External buffers remain comfortable despite current account balances having narrowed. Risks around the outlook are broadly balanced in the near term. More challenging medium-term risks, especially in the context of geoeconomic fragmentation and climate change, call for action on policy priorities to continue to strengthen the private sector and to diversify the economy.

Subject: Fiscal policy, Fiscal rules, Labor, Labor markets, Production, Total factor productivity

Keywords: B. GCC, Economic diversification, Financial stability, Fiscal rules, Fiscal sustainability, GCC, GCC country, GCC public sector balance sheet, GCC well, Global, Labor markets, Middle East, Middle East and Central Asia, Policy priority, Productivity improvements, Regional integration, Total factor productivity

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