The EU’s plans to phase out imports of Russian oil would increase the chances that the Gulf economies raise oil output more quickly. This would provide a significant fillip to economic recoveries this year. Meanwhile, by virtue of their dollar pegs, central banks in the Gulf followed the US Fed in raising interest rates and will have to continue tightening. Even so, with oil prices very high, it seems more likely that credit growth in the region will strengthen.
EM Drop-In (5th May, 10:00 EDT/15:00 BST): Join Shilan Shah for our latest monthly session on the big macro and markets stories in EMs. This month, Shilan and the team will be talking Russian gas, FX weakness and surging food prices. Register now
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