IMF: the budgets of the Gulf countries will lose in 2015 to $275 billion

IMF: the budgets of the Gulf countries will lose in 2015 to $275 billion

WASHINGTON, 8 Nov. The GDP growth of the Gulf countries due to the fall in oil prices will slow to 3.2 % in 2015, budgets will not be counted 275 billion dollars, their deficit would be 12.7 per cent, reported by the Executive Director of the International Monetary Fund (IMF) Christine Lagarde.

“At the present time a large share of tax and export revenues in the Gulf States comes from oil. Oil prices dropped sharply from mid 2014, export revenues are expected to be in 2015 almost 275 billion less than in 2014, fiscal and current account balances in the region is sharply reduced. The IMF projected a budget deficit of 12.7% of GDP in 2015,” he said Sunday, speaking before the Finance Ministers of these countries at the meeting of the cooperation Council for the Arab States of the Gulf (GCC) in Qatar.

Also, according to her, is expected to slow GDP growth of the countries of the region to 3.2 % in 2015 and 2.7% in 2016, lower than in 2014 (3.4 per cent).

However, created by “buffer funds” (reserve funds — ed.) allow “to avoid the need for sudden adjustments of fiscal policy” and to abide by the States ‘ social burden, added Lagarde.

In the Gulf countries are the largest players in the global oil market: Bahrain, Kuwait, Oman, Saudi Arabia, Qatar and the United Arab Emirates.