We’ve argued for some time that the Gulf economies are set to run a current account deficit this year for the first time in over a decade, and the latest plunge in oil prices means this deficit could come in at almost 10% of GDP – something not seen since the early 1990s. In spite of this, these countries’ large FX savings mean they should be able to weather a period of low oil prices relatively well. As a result, while we expect growth to slow over the coming years, it’s unlikely to collapse.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services