COVID-19 and oil price collapse are proving a double-edged sword to the Gulf Cooperation Council (GCC) countries. The World Bank recommends these countries to prioritize their focus on handling the COVID-19 virus pandemic and the impending recession resulting from the virus and a sharp decline in the oil price.
A recent study done by The Halal Times reveals the nature of the problems GCC economies have been facing for quite some time now. The Covid-19 pandemic and the oil price meltdown have only exacerbated the already mounting problems these have been facing long before.
The GCC countries have taken unprecedented steps to tackle health emergencies and the associated risk of economic depression. A blog post by the World Bank staff recently highlighted the effects of the dual shock on the GCC countries and the policy measures they could take to tackle the COVID-19 pandemic and its economic consequences. It recommends the countries to adopt long term policies to tackle the fiscal consolidation in response to the persistent drop in oil prices.