Standard & Poor's credit rating agency expects that the budget deficit in the Gulf Cooperation Council countries will drop sharply this year, supported by high oil prices, fiscal consolidation, and a recovery in economic output while easing measures of the Coronavirus.
Standard & Poor's has projected that the total deficit of central governments in the Gulf Cooperation Council countries will reach about $ 80 billion this year from $ 143 billion in 2020. Indicating that the fiscal deficit in the Gulf Cooperation Council countries, which is still high, will lead to the continued deterioration of the balance sheet in most cases. The Agency disclosed that, with the exception of Kuwait and Bahrain, the budgetary performance of the two countries was stronger than it was in 2016, which is the previous collapse of oil prices.
According to the credit rating agency, the fiscal deficit is expected to decrease during the period from 2021 to 2022 and expand again in 2023-2024, given the anticipated expectations for oil prices, as well as the gradual reduction in oil production in line with the OPEC + agreement in May 2021.
Source (Al-Arabiya.net, Edited)
