IMF More Upbeat on Gulf, But Sees Continued Stimulus as Crucial

The International Monetary Fund has become more optimistic about economic growth prospects for Gulf Arab states, but is urging governments to retain social spending as a resurgence in coronavirus cases clouds the region’s outlook.

Economic output in the six countries comprising the Gulf Cooperation Council is now set to shrink 6% this year, less than the 7.1% contraction forecast in July, according to the updated regional outlook for the Middle East and central Asia published Monday. The improvement was fueled by an upward revision for the region’s largest economy, Saudi Arabia.