GCC countries may face a deep recession, Japan`s Mitsubishi UFJ Financial Group reported on Monday. The bank expects the GCC economies` GDP to shrink by 3.7% this year.
The forecast was based on the recent oil output cuts, the on-going impact of COVID-19 pandemic, and the stimulus packages provided by various GCC economies recently.
The Halal Times made a detailed study of the GCC economies recently showing the severity of the economies these GCC economies have been experiencing for quite some time now.
The overall loss due to the recent oil price drop is expected to cost $72 billion for the Gulf nations.
“The GCC region continues to grapple with two ultra-bearish shocks – demand-side destruction caused by COVID-19 and supply-side challenges caused by the oil price collapse,” the report noted.
“The GCC region has faced setbacks and shocks over many decades, but seldom has the near-term outlook soured so profoundly,” it said.