Oil prices have fallen over the past month as global recession fears have mounted but, while they are likely to decline further over the coming years, they will remain high by past standards. This will provide scope for Gulf governments to loosen fiscal policy. Indeed, Saudi Arabia and the UAE both unveiled economic relief packages this week, the first sign of officials shifting in this direction. Finally, PMIs this week further reinforced the picture of diverging economic performances between the Gulf and the non-Gulf economies.
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