Conscious / Moody's: the continuing decline in oil prices and the increase in the fiscal deficit in the Gulf States

20/10/2015 09:00

The current price of oil, which is considered low pressure continues on the current and reserve accounts of the Gulf Cooperation Council.

According to Moody's credit rating remarks during the day, where you expect oil prices stay low in the long term and adds that these prices will stimulate the Gulf states to do over the next year financial reforms, from within it to take appropriate measures to expand the sectors of non-oil and reduce spending on support. "

Outlook Moody's to also indicate that the GCC countries will experience a fiscal deficit during the current and next year by up to 10% of GDP, on top of most countries affected by the decline in crude oil prices come both Bahrain and Oman, while Saudi Arabia have a chance to issue more government bonds.

Moody's also expects the return of the recovery in oil prices only in 2017 and estimates that Brent oil prices remain at levels close to $ 55 a barrel during the current year and near $ 53 a barrel next year and this before to achieve recovery through 2017 and is trading near $ 60 a barrel.