IMF Says Gulf States Set to Swing Into Deficit as Oil Falls

The oil-rich nations of the Persian Gulf are set to post budget deficits this year after a plunge in crude prices, the International Monetary Fund said.

The six nations of the Gulf Cooperation Council will have a collective fiscal gap of 6.3 percent of gross domestic product, a swing of about 11 percentage points from last year’s surplus, the IMF said in a report published in Washington on Wednesday. While many nations have enough savings to avoid steep cuts and “limit the drag on growth,” they will need to adjust spending plans in the longer term, it said.