Gulf states risk deficit as oil price falls: IMF head

Kuwaiti Finance Minister Anas al-Saleh (left) cuts a ribbon next to Christine Lagarde during a ceremony to inaugurate the Middle East Center for Economics and Finance on October 25, 2014 in Kuwait CityOil-dependent Gulf states will face budget shortfalls if the recent decline in oil prices persists, International Monetary Fund chief Christine Lagarde warned Saturday. A sustained decline of $25 a barrel in the oil price would reduce the revenues of most Gulf countries by eight percent of gross domestic product, “and put many of them into a fiscal deficit situation,” Lagarde told reporters.

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