(MENAFN) According to the International Monetary Fund (IMF), the GCC economies are expected to grow 4.5 percent in 2014-15, Emirates 24/7 reported.
The IMF said that the GCC economies have been amongst the best performing in the world in recent years, resulting in them having a positive the near future, especially their growth in terms of the non-oil sector which is expected to remain strong at about 6 percent, driven by large investments in infrastructure and private sector confidence.
However, oil prices, which have fallen by about 25 percent since the summer, might negatively affect fiscal and external balances in the region despite these countries having substantial fiscal buffers which the countries have accumulated during the past decade, which will allow the GCC governments to maintain spending plans in the near-term, in almost all the countries.
The IMF also said that the future success of the GCC economies will be dependent on these countries' ongoing efforts to boost the employment of nationals in the private sector as well as increasing economic diversification.
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