Posted by Bob Brunskill
The countries of the Gulf Cooperation Council (GCC) are expected to experience solid growth over the next two years, a Dubai Chamber of Commerce & Industry report has found.
According to the study, GCC countries will see their real GDP growth increase by around 4.0 per cent and 4.6 per cent in 2010 and 2011, respectively.
It was also noted that in response to a rebound in oil prices and oil production levels, GCC countries' fiscal and external balances are expected to improve significantly during 2010 and 2011.
Oil production is expected to increase to 14.7 million barrel per day in 2010 and reach 15 million barrels a day in 2011.
The analysis further revealed that the GCC countries have "fiscal space" to maintain additional stimulus in 2010 and 2011 that will be capable of strengthening private sector demand.
"With inflationary pressures remaining subdued, the short-term challenge for the GCC monetary policy is to balance the revival of credit growth while mitigating a potential resurgence of inflationary pressures," said the Dubai chamber.