Protracted low oil price a risk to Gulf region: IMF

Economic growth in the six Gulf Arab countries is strengthening but a major risk to the outlook is if oil prices remain low for a protracted period, the International Monetary Fund said on Wednesday.                                           

In an updated report on the Gulf Cooperation Council member states, which include Saudi Arabia and the United Arab Emirates, the IMF said they should start preparing an exit strategy from the current high spending levels but only implement it once conditions allow.                                            

The IMF revised up its growth forecast for non-oil growth for GCC states to 4.3%, higher than the 4% it forecast in May in a regional outlook.                                            
 

US crude oil futures rose for a third straight day on Wednesday as economic optimism reflected in stronger equities markets helped keep oil prices bolstered. On the New York Mercantile Exchange, September crude rose 85 cents to $78.43 a barrel by 8.40am EDT.                                            

GCC states include Saudi Arabia, United Arab Emirates, Kuwait, Oman, Bahrain and Qatar.