(MENAFN) Fiscal policy responses by Gulf Cooperation Council (GCC) sovereigns to lower oil prices are likely to be small compared to the loss of revenues over 2015 and 2016.
The size of the fiscal challenge from cheaper oil varies from country to country, broadly in line with hydrocarbon production per capita, said Fitch Ratings in a statement.
Bahrain, Oman and Saudi to record double-digit deficits in 2015, although all three will benefit from some narrowing next year as capex is scaled back and oil prices start to recover.
However, general government debt levels for these three sovereigns will continue to rise in 2016, as borrowing resumes or increases to help finance deficits.
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