Arab Today, arab today moodys lower oil income to drive fiscal refoms in gcc
Last Updated : GMT 13:21:39
Arab Today, arab today
Arab Today, arab today

Moody's: Lower oil income to drive fiscal refoms in GCC

Arab Today, arab today

Arab Today, arab today Moody's: Lower oil income to drive fiscal refoms in GCC

The six-nation Gulf Cooperation Council (GCC)
Dubai - AFP

A projected long-term drop in oil prices will drive fiscal reforms in energy-dependent Gulf states and spur public borrowing, Moody's Investor Service said on Tuesday.

The ratings agency also revised downward its projections for oil prices from $65 a barrel to average $55 this year and $53 dollars in 2016.

The six-nation Gulf Cooperation Council (GCC) states grouping Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, depend on oil for around 90 percent of their revenues.

"We expect that the impact of lower hydrocarbon revenues on GCC public finances will spur policy adjustments in 2016," said Steffen Dyck, a VP-Senior Analyst at Moody's.

"These could include reductions in subsidy spending and measures to broaden the non-oil revenue base," he said.

The UAE took the lead in June by liberalising fuel prices. Kuwait lifted subsidies on diesel and kerosene and other states are planning subsidy cuts.

Oil prices have fallen by around 60 percent since June 2014 due to oversupply and weak global demand.

As a result, GCC states are expected to lose $300 billion in oil revenues, said the International Monetary Fund.

The oil price drop caused aggregate nominal hydrocarbon gross domestic product for the six GCC states to fall by 11 percent between 2012 and last year to $685 billion, Moody's said.

The combined current account surplus slipped to 14 percent of GDP from almost 25 percent during the same period.

"We expect that the GCC region will post a combined fiscal deficit of close to 10 percent of regional GDP in 2015 and 2016, respectively, compared to an average aggregate surplus of almost 9.0 percent in the years 2010 to 2014," Moody's said.

That would translate into a deficit of over $140 billion this year.

Moody's expects that all GCC states will borrow to face budgetary shortfalls.

"Overall (GCC) government gross borrowing needs will likely average about 12.5 percent of regional GDP, or around $180 billion per year in 2015 and 2016," Dyck said.

Saudi Arabia and Qatar have already issued bonds.

Some GCC states, mainly Saudi Arabia, have started withdrawing from foreign reserves estimated at $2.7 trillion by the International Institute of Sovereign Funds.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today moodys lower oil income to drive fiscal refoms in gcc Arab Today, arab today moodys lower oil income to drive fiscal refoms in gcc

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today moodys lower oil income to drive fiscal refoms in gcc Arab Today, arab today moodys lower oil income to drive fiscal refoms in gcc

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Malaysia Airlines picks new CEO

GMT 12:54 2017 Saturday ,21 October

Malaysia Airlines picks new CEO
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Residents get glimpse of Raqa in ruins

GMT 07:10 2017 Saturday ,21 October

Residents get glimpse of Raqa in ruins
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today EU raids automaker BMW

GMT 11:06 2017 Saturday ,21 October

EU raids automaker BMW
Arab Today, arab today Sweden to get biggest car factory

GMT 14:10 2017 Friday ,20 October

Sweden to get biggest car factory
Arab Today, arab today Actress Mona Zaki praises husband’s role

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 08:57 2017 Wednesday ,18 October

Actress Shery Adel happy for Egypt’s qualification

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 09:56 2017 Friday ,20 October

Privacy Groups Warn of Perils

GMT 08:04 2017 Thursday ,19 October

Second US judge orders freeze

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday