The agency "Moody's" expects budgets Gulf deficit

March 24, 2016 15:28
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The agency "Moody's" International credit rating agency predicted that the budgets of the GCC deficit to 12.5% ​​of gross domestic product up during the current year.

The agency said it expects the fiscal deficit in the budgets of states, "the Gulf Cooperation Council" from 9% in 2015 to 12.5% ​​of GDP for the current year.

She added, "Moody's" The continuing decline in oil prices will push economic growth slowdown and the erosion of reserves, and will increase the deficit and raise the debt levels, pointing out that although it expects that growth remains positive with the adoption of the Gulf states on spending reduced gradually and continue oil production.

The "Moody's" that high deficits will be the fastest in all of Saudi Arabia, Bahrain and Oman, which will reach him in the UAE, Qatar and Kuwait, where he will ease reserves from the negative short-term effects, with recourse governments of those countries are increasingly to foreign debt.

The "Moody's" to be the largest increase in the debt to GDP will be in both Bahrain and Oman for up to 35 and 18%, respectively, compared with 2014, followed by Saudi Arabia, which equally by 15%, while the ranges proportion to the rest of the Gulf States 11 - 13% of GDP.