Gulf should adjust to new oil price 'reality': IMF

Director of the International Monetary Fund's Middle East and Central Asia Department, Masood AhmedGulf economies need to adjust to the “new reality” of oil prices expected to remain low for some time, the International Monetary Fund says, recommending spending cuts and income diversification. The budgets of Gulf Cooperation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates are facing an average deficit this year of 13 percent of gross domestic product (GDP), Ahmed told AFP in an interview. “Most people today believe that oil prices may come up a little bit from where they are today… By 2020, we are expecting to see oil prices in the low and mid 60s rather than the numbers they were used to,” said Ahmed.

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